What Is the Principle Advantage of Obtaining Section 501(c)3 Status

question 92

Multiple Choice

What is the principle advantage of obtaining section 501(c) 3 status?

• A) The charitable organization is permitted to engage in a trade or business unrelated to its mission without having to pay income taxes.
• B) Donors to the charitable organization are permitted to deduct contributions to the organization in computing their income taxes.
• C) Both (a) and (b) above.
• D) Neither (a) nor (b) above.

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Definitions:

Marginal Product

The additional output produced by adding one more unit of a specific input, holding all other inputs constant.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent or salaries.

Hail Insurance

A type of insurance policy specifically designed to protect crops from hail damage.

Total Product

The total quantity of output produced by a firm over a given period of time.