Which of the following is not prohibited of organizations receiving tax-exempt status under IRS Section 501(c)(3)?
A) Earning a profit (increase in net assets).
B) Distributing earnings to the benefit of members or officers.
C) Endorsing political candidates or attempting to influence legislation.
D) None of the above. All of these are prohibited of Tax-exempt organizations.

Question

Quizplus · Accepted Answer

Organizations with 501(c)(3) status can earn a profit, but the profits must be reinvested in the organization's mission and cannot benefit private individuals.

Which of the Following Is Not Prohibited of Organizations Receiving