A tax-exempt organization that receives its support primarily from a large number of individuals or corporations and a relatively small amount from investment income is called a:
A) Public charity.
B) Private foundation.
C) Public foundation.
D) Voluntary health and welfare organization.

Question

Quizplus · Accepted Answer

A public charity typically relies on donations from individuals and corporations to fund its activities, rather than investment income. Private foundations, on the other hand, are typically funded by a small number of individuals or families and have strict rules about how they can distribute their funds. Public foundations and voluntary health and welfare organizations are not commonly used terms in the United States tax code.

A Tax-Exempt Organization That Receives Its Support Primarily from a Large