Question
What makes §501(c)(3) 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
Why must a §501(c)(3) satisfy both organizational and operational tests?
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Answer
To ensure its documents and activities serve exempt purposes only.
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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
Why is a tax-exempt organization still subject to federal tax on some income?
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Answer
Exemption covers mission-related income, not unrelated business income.
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