Which of the Following Is Not Prohibited of Organizations Receiving

question 108

Multiple Choice

Which of the following is not prohibited of organizations receiving tax exempt status under IRS Section 501(c) 3?

• A) Earning a profit (increase in net assets).
• B) Endorsing political candidates or attempting to influence legislation.
• C) Distributing earnings to the benefit of members or officers.
• D) None of the above. All of these are prohibited of Tax Exempt organizations.

---

Definitions:

Altered

Changed in character, form, or function; often referring to modifications that affect the integrity or original condition of an item or document.

Transferor

A transferor is a party who transfers rights, titles, or interests in a property or contract to another party, known as the transferee.

Transferee

An individual or entity that receives property, rights, or interest from another through a lawful transfer.

Present

The current moment or period of time; also refers to formally introducing or making something known.