ACCT 4421 Ch 13-14 SB Questions and
Answers 100% Solved
With regards to taxes levied by state and local governments, NFPs are often ______.
exempted from both state and local taxes
The articles of incorporation must limit an entity's purposes to those described in the
classifications of IRC section 501 under the ______. organizational test
Once an organization is recognized by the state as an NFP, the responsibility to represent public
beneficiaries of charities and contributors lies with which of the following? state
The NFP must provide the contributor with written disclosure of the contribution amount for a
single charitable contribution equal to or greater than what amount? $75
The ultimate penalty imposed on NFPs for violations of laws relating to lobbying is which of the
following? revocation of exemption from taxes
,Every organization that qualifies as an IRC section 501(c)(3) organization is considered a(n)
______ unless it meets the requirements of section 509(a) to be excluded. private
foundation
Public charities apply to the IRS for which of the following? - 501(a) tax-exempt status
using Form 1024
- 501(c)(3) tax-exempt status using Form 1023
With regards to excise taxes and limitations faced by donors, which of the following receive
preferential treatment because of their broad base of support? public charities
NFPs that do not have to file Form 1023 to be considered tax-exempt under section 501(c)(3)
include which of the following? - any organization that has gross receipts in each taxable
year of normally not more than $5,000
- religious organizations
, The organizational test for tax-exempt status is that the articles of incorporation ______. -
may not attempt to influence legislation as a substantial part of its activities
- must limit the NFP's purposes to classifications in IRC section 501
- cannot benefit private interests
If the IRS has classified an organization as a public charity, data must indicate that the public
support test has been met in its ______ year. sixth
Contributions are ______ transactions for which the donor receives no benefit as a result of
making the contribution. nonexchange
The public support test is generally met if an NFP normally receives at least ______ of its total
support from governments, contributions made directly or indirectly by the general public, or
some combination of these sources. 1/3 (one-third)
Answers 100% Solved
With regards to taxes levied by state and local governments, NFPs are often ______.
exempted from both state and local taxes
The articles of incorporation must limit an entity's purposes to those described in the
classifications of IRC section 501 under the ______. organizational test
Once an organization is recognized by the state as an NFP, the responsibility to represent public
beneficiaries of charities and contributors lies with which of the following? state
The NFP must provide the contributor with written disclosure of the contribution amount for a
single charitable contribution equal to or greater than what amount? $75
The ultimate penalty imposed on NFPs for violations of laws relating to lobbying is which of the
following? revocation of exemption from taxes
,Every organization that qualifies as an IRC section 501(c)(3) organization is considered a(n)
______ unless it meets the requirements of section 509(a) to be excluded. private
foundation
Public charities apply to the IRS for which of the following? - 501(a) tax-exempt status
using Form 1024
- 501(c)(3) tax-exempt status using Form 1023
With regards to excise taxes and limitations faced by donors, which of the following receive
preferential treatment because of their broad base of support? public charities
NFPs that do not have to file Form 1023 to be considered tax-exempt under section 501(c)(3)
include which of the following? - any organization that has gross receipts in each taxable
year of normally not more than $5,000
- religious organizations
, The organizational test for tax-exempt status is that the articles of incorporation ______. -
may not attempt to influence legislation as a substantial part of its activities
- must limit the NFP's purposes to classifications in IRC section 501
- cannot benefit private interests
If the IRS has classified an organization as a public charity, data must indicate that the public
support test has been met in its ______ year. sixth
Contributions are ______ transactions for which the donor receives no benefit as a result of
making the contribution. nonexchange
The public support test is generally met if an NFP normally receives at least ______ of its total
support from governments, contributions made directly or indirectly by the general public, or
some combination of these sources. 1/3 (one-third)
