What Is the Primary Difference Between a 501(c)organization and a 527

question 24

Multiple Choice

What is the primary difference between a 501(c) organization and a 527 organization?

• A) There is no difference.
• B) A 501(c) can spend only a portion of its budget on political activities, but a 527 can spend as much as it wants.
• C) A 501(c) can spend money only on advertising, while a 527 can only make donations to candidates.
• D) The money given to a 527 is tax deductible, while the money given to a 501(c) is not.
• E) A 501(c) group is not regulated by the government, while a 527 group must answer to both the Federal Election Commission and the Internal Revenue Service.

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Definitions:

Wilcoxon Rank Sum Test

A nonparametric statistical test used to compare two independent samples to ascertain if they come from the same distribution.

Shift In Distribution

A change in the overall characteristics of a data set's distribution, such as its mean, variance, or shape, that deviates from a previously observed or expected pattern.

Rejection Region

In hypothesis testing, the range of values for which the null hypothesis is rejected, indicating that the observed data is highly unlikely under the null hypothesis.

Wilcoxon Rank Sum Test

A nonparametric test that compares two independent groups to assess if their populations have the same distribution.