A § 501(c)(3) Organization Exchanges Its Membership Lists with Another

question 107

Essay

A § 501(c)(3) organization exchanges its membership lists with another exempt organization. What are the Federal income tax consequences?

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Definitions:

Crowding Out

A phenomenon where increased government spending leads to a reduction in private sector investment due to higher interest rates.

Increase Taxes

Refers to a government's decision to raise the percentage of compulsory contributions on personal or corporate income, goods, services, or transactions, often aimed at financing government expenses.

Lower Interest Rates

A monetary policy strategy where central banks reduce the cost of borrowing money in an effort to stimulate economic growth.

Crowding Out

A situation in which increased government spending leads to a reduction in private sector spending and investment.