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) Endorsing political candidates or attempting to influence legislation.
C) Distributing earnings to the benefit of members or officers.
D) None of the above. All of these are prohibited of Tax Exempt organizations.

Question

Quizplus · Accepted Answer

Earning a profit or an increase in net assets is not prohibited for organizations receiving tax exempt status under IRS Section 501(c)3, as long as the profits are used for the organization's tax-exempt purposes. However, endorsing political candidates or attempting to influence legislation and distributing earnings to benefit members or officers are prohibited activities.

Which of the Following Is Not Prohibited of Organizations Receiving