Tax Exempt Organizations Flashcards
1
Q
Define “private foundation.”
A
A private foundation is a tax-exempt organization which receives less than one-third of its annual support from its members and the general public.
2
Q
What is the tax rate for unrelated business income (UBI)?
A
UBI is taxed (only if it exceeds $1,000) at regular corporate rates if the organization is a corporation; at trust rates if it is a trust.
3
Q
What are the general filing requirements for an exempt organization?
A
They must file an information return (Form 990) if gross receipts exceed $50,000. Most exempt organizations not required to file an information return must file an annual electronic notice with the IRS (Form 990-N).
