What is the principle advantage of obtaining section 501(c)3 status?
A) The charitable organization is permitted to engage in a trade or business unrelated to its mission without having to pay income taxes.
B) Donors to the charitable organization are permitted to deduct contributions to the organization in computing their income taxes.
C) Both (a) and (b) above.
D) Neither (a) nor (b) above.

Question

Quizplus · Accepted Answer

The primary advantage of obtaining 501(c)3 status is that it allows donors to deduct their contributions from their taxable income, encouraging more donations.

What Is the Principle Advantage of Obtaining Section 501(c)3 Status