Exempt Organizations

Question 1

Section 501(c)(1) - Act of congress

Answer 1

Do not require application

Question 2

Section 501(c)(2)

Answer 2

Form 1024
Exlusive purpose of holding title to property, collecting income from that property and turn over the net income to an exempt organization

Question 3

What’s considered 501(c)(3) entities?

Answer 3

• Community chest/fund
• Foundation organized and operate for religious charitable, scientific, public safety testing
• Foundation to foster national and international amateur sport competition (not supply facilities and equipment)
• prevent cruelty to children or animal.

Question 4

501(c)(3) prohibited transactions?

Answer 4

Influence legistration

Directly participating or intervening in any political campaign.

Question 5

Section 509- private foundation

Answer 5

-include all 501(c)(3) EXCEPT:
   \+ Max 50% charitable deduction donees
   \+ Broadly public-supported org.
   \+ Supporting org.
   \+ Public safety org.
- Foreign corp may qualify
Require 990PF annual

Question 6

Unrelated business income (UBI)

Answer 6

$1000 deduction allowed.

Exclude:
+Royalties, dividend, interest, annuities
+ Rent from real properties
+Gain/Loss from sale of properties not primarly for sale
+Income from research of college/hospital
+Income from labor unions to establish retirement home.
+Bingo
+Value of sec. loaned to a broker
+ Income fr exchange or rental of membership of tax-exempt charitable organization.

Question 7

990

Answer 7

Due May 15.

Gross income, receipt, contribution, disbursements.

Question 8

Entities not require to file 990?

Answer 8

50,000 or less gross receipt
C- Church
H- Highschool religious
R- Religious order
I- Internal support auxiliaries
S - Societies - missionary related
T - Tax exempt - organized by congress.