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:

Average Total Assets

The average value of all assets owned by a company over a period, typically calculated by combining the beginning and ending values for a period and dividing by two.

Asset Turnover

A ratio that determines the competence of an organization in using its assets to generate income from sales.

Book Value

The net value of a company's assets minus its liabilities, often used to assess its equity value.

Intangible Asset

An asset that is not physical in nature, such as patents, copyrights, trademarks, and goodwill.