What Is the Purpose of the "Broadly Supported" Exception for an Exempt

question 16

Essay

What is the purpose of the "broadly supported" exception for an exempt organization being classified as a private foundation?

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Definitions:

Indirect Expenses

Expenses that cannot be traced directly to one department.

Percent Of Sales

A financial ratio that compares various components of an income statement to the total sales revenue.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting operating expenses.

Sales Journal

A specialized journal used to record all credit sales transactions of a business.