Which of the following is a prohibited activity for a Tax Exempt Organization?
A) Make a Profit
B) Make financial contributions to a political candidate
C) File a tax return
D) Give money away

Question

Quizplus · Accepted Answer

Tax Exempt Organizations, such as charities and non-profit organizations, are prohibited from engaging in partisan political activity or contributing to political campaigns. This is to maintain their status as tax-exempt entities and to ensure that their work is not influenced by political affiliations. Making a profit, filing a tax return, and giving money away are all permissible activities for tax-exempt organizations.

Which of the Following Is a Prohibited Activity for a Tax