If an Exempt Organization Distributes "Low­cost Items" as an Incidental

question 45

Essay

If an exempt organization distributes "low­cost 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:

Chemical Reactions

Processes in which one or more substances are chemically changed into one or more new substances.

Pyrogens

Substances that cause fever by acting on the hypothalamus's temperature-regulating center.

Adipose Stores

Adipose stores refer to the body's fat reserves, primarily stored in adipose tissue, which provides insulation and energy.

Depolarization Phase

Change in the electric charge difference across the plasma membrane that causes the difference to be smaller or closer to 0 mV; phase of the action potential in which the membrane potential moves toward zero, or becomes positive.