Question

Test - Senior Tax Analyst Certification Test (2020) Exempt Organizations Question 9 of 75. Which of the following is an example of an unrelated business activity for an exempt organization? Allare qualified as tax-exempt organizations under IRC 501(c)(3). Let's Read Together, Inc, a literacy program run by volunteers, conducts a bake sale every month Charity Local Clinic, Inc, a small medical facility located in a rural area, has a small cafeteria for the benefit of the medical personel and patients. O Leashes and Litter Pans, Inc., a dog and cat rescue organization, operates a food truck in the industrial district on weekdays throughout the year. O Homeless Gone Now, Inc, an organization to provide shelter for homeless individuals, operates a with store that sells donated goods O Mark for follow up Question 10 of 75. A university bookstore sells collegiate apparel and reports the sale of those items on which of the following forms?

Answer 1

Answer - All organisations are exempt

a nonprofit organization may be tax-exempt under section 501(c)(3) if its primary activities are charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports competition, preventing cruelty to children, or preventing cruelty to animals.