Tax-Exempt Organizations: Types of Organizations

Question 1

The first $1,000 of unrelated business income

Answer 1

of a nonprofit is exempt from tax

Question 2

If the nonprofit is a corporation

Answer 2

the income is taxed at corporate rates

Question 3

The private foundation status of an exempt organization will terminate

Answer 3

If it becomes public

Question 4

Nontaxable income includes

Answer 4

dividends and interest, royalties and capital gains, and other rental income (not financed by debt)