Tax-Exempt Organizations

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Question

How does a public charity differ from a private foundation?

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Answer

A public charity has broad public support; a foundation usually does not.

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Question

What happens if an exempt organization fails to file Form 990 for three years?

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Answer

Its exempt status is automatically revoked.

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Question

What makes the most tested exempt category?

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Answer

It allows deductible charitable contributions and has the strictest limits.

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Question

What three conditions create unrelated business taxable income?

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Answer

Trade or business, regularly carried on, and not substantially related.

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