An Exempt Organization Can Avoid Classification as a Private Foundation

question 128

Multiple Choice

An exempt organization can avoid classification as a private foundation if it is broadly publicly supported.To be broadly publicly supported, which of the following is required?

• A)The exempt organization does not receive support from a feeder organization.
• B)An external support test is satisfied.
• C)An internal support test is satisfied.
• D)Only b.and c.must be satisfied.
• E)a., b., and c.must be satisfied.

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Definitions:

Auditors

Professionals who examine financial records to ensure their accuracy and compliance with applicable rules and regulations.

Sarbanes-Oxley Act

A law passed in 2002 by the U.S. government aimed at safeguarding investors by enhancing the truthfulness and consistency of corporate reporting.

Accountant-Client Privilege

A legal principle that protects the confidentiality of communications between an accountant and their client.

Confidentiality

The requirement to keep certain information private or secret, often observed in professional, legal, and personal contexts.