Agnes Is Aware That a Feeder Organization Is Subject to Federal

question 113

Essay

Agnes is aware that a feeder organization is subject to Federal income taxation. She wonders whether an organization otherwise taxable as a feeder organization can avoid such status if it remits less than 80% of its profits to the § 501(c)(3) entity.

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Definitions:

Shaping

A method of learning that uses rewards to reinforce behaviors that gradually approximate the desired behavior.

Operant Conditioning

A learning process in which the consequences of an action determine the likelihood of it being repeated, influenced by reinforcement or punishment.

Captured Soldiers

Military personnel who have been taken prisoner by an opposing force.

Variable Interval

A reinforcement schedule that rewards a response at random time intervals, without a predictable pattern.