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Watch, Inc., a § 501(c)(3) exempt organization, solicits contributions through a mail campaign. An executive, who recently completed an executive MBA degree program, recommends that personal address labels be included as an additional way to motivate the potential donor to contribute. The value of these labels is $9.95 per potential donor. What is the effect of the inclusion of the address labels on Watch's unrelated business income?
Lump Sum
A single payment made at a particular time, as opposed to multiple payments over time.
Installment Loan
is a type of loan that is repaid over time with a set number of scheduled payments, typically monthly.
Outstanding Principal
The remaining amount of money borrowed on a loan or bond that has not yet been repaid.
Equity Capital
Funds raised by a company in exchange for a share of ownership in the company.
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