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:

Obligation

A legal or moral duty to do something or pay an amount to someone.

Compounded Monthly

Interest calculation method where the interest is added to the principal at the end of each month, resulting in "interest on interest".

Interest

The cost of borrowing money, typically expressed as an annual percentage rate.

Scheduled Payments

Predetermined amounts paid at regular intervals as part of a loan agreement or payment plan.