Non Profits

Question 1

Exempt Organizations that do not have to file an annual form 990/990EZ

Answer 1

$50,000 & CHRIST i.e.

$50,000 or less in Gross Receipts
Churches
High Schools - religious ones
Religious Orders
Internal Support Auxiliaries
Societies - missionary related
Tax Exempt Organized by Congress

Question 2

501 (c) (3) Most common type of tax exempt org.

Answer 2

Generally - Foundation organized & operated exclusively for Religious, Charitable, Scientific, Public Safety Testing, Literary or Educational Purposes; or a Foundation organized to foster national or international amateur sports competions (ONLY if NONE of the activities involve providing ATHLETIC FACILITIES or EQUIPMENT),
or a foundation to prevent cruelty to children or animals.

Question 3

501 (c) (3) must

Answer 3

Apply and be Approved by the IRS to be listed as an exempt organization by the IRS.

Question 4

Requirements (penalty is loss of tax-exempt status)

Answer 4

No part of net earnings may be to the benefit of any private shareholder or individual.

ENDORSE CANDIDATES

ENGAGE IN FUND RAISING FOR POLITICAL CANDIDATES

Question 5

Sec 509 - Private Foundations

Answer 5

Include all 501 (c) (3) corporations OTHER THAN:

a) Maximum (50% type) charitable deduction donees
b) Broadly publicly-supported organizations getting more than 1/3 of their annual support from members & the public and less than 1/3 from investment income and UBI.

Supporting Organizations

Public Safety testing organizations

Question 6

Unrelated Business Income (Like to Test on This)

Answer 6

UBI:

Derived from an activity that constitutes a trade or business (ex.-Monestary regularly rented for business)

Regularly carried on

Not substantially related to the organization’s tax exempt purposes.

NOTE: UBI does NOT include any activity where all of the work is performed by UNPAID WORKERS (VOLUNTEERS). Futhermore, Articles made by disabled persons as part of their rehab are deemed “RELATED” and non-taxable.