To Satisfy the Broadly Supported Provision to Avoid Classification as a Private

question 78

True/False

To satisfy the broadly supported provision to avoid classification as a private foundation, the exempt organization must satisfy both an external support test and an internal support test. Under the internal support test, more than one- third of the exempt organization's support for the taxable year must come from gross investment income and unrelated business taxable income.

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Definitions:

Conventional

Following traditional practices or norms; not novel or unconventional.

Preconventional

A stage in moral development characterized by reasoning based on personal rewards and punishments.

Postconventional

A stage of moral development in which individuals make judgments based on universal principles and the rights of others rather than convention.

Moral Development

Refers to the processes through which individuals acquire and understand moral standards and behaviors.