Question

1. What are three types of legal constraints that have an influence on the earned-income options of a U.S. nonprofit organization?

Answer 1

Here, let me discuss about three types of legal constraints that have influence on the earned income options of a U.S. nonprofit organization, those are as stated below:

• Here, Not for profit organization can receive Tax exemption, in such situation must disclose that their Assets will not benefit Directors, Members, Officers, Etc, Organization must serve various purpose like educational purpose, religious purpose, health care service providers, etc, however, organization can pay their employees as they are giving their efforts for the company Not for profit organization, hence, It is clear that Taxation process can Influence on the earned-income options of a U.S. nonprofit organization.
• Every Not for profit organization needs to follow legal regulations that further will help them to take donation in effective way, however, charitable fraud prevention could influence on the earned-income options of a U.S. nonprofit organization, here, such prevention could be time consuming and process may be grueling, hence, time to collect donation may be affected,
• Another legal effect like Not for profit organization can face vicarious liability that can attack organizational employees or volunteers as they have created harm on third parties or public, hence,, such legal constraints will have an influence on the earned-income options of a U.S. nonprofit organization,