If an Exempt Organization Distributes "Low-Cost Items" as an Incidental

question 43

Essay

If an exempt organization distributes "low-cost items" as an incidental part of its solicitation for charitable contributions, the distribution is not considered an unrelated trade or business.
a. Under what dollar amount is a distribution no longer a "low-cost item"?
b. Provide examples of low-cost items.

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Definitions:

Subsistence Pattern

The means by which a society acquires its food resources, ranging from hunting and gathering to agriculture and industrial food production.

Hunting

The practice of tracking and killing wild animals for food, recreation, or trade, often regulated by laws to ensure sustainable populations.

Gathering Societies

Communities that primarily subsist on gathering, hunting, and fishing, rather than agricultural or animal husbandry practices.

Bifurcated Consciousness

A term describing the internal conflict experienced by individuals who are forced to reconcile two drastically different perceptions or lived realities simultaneously.