What is the principal advantage of having 501c 3 status to an organization that receives substantial support from outside contributors?
A) The organization does not have to pay federal income tax.
B) Donors to the organization may deduct their contributions as charitable donations.
C) The organization does not have to pay state sales taxes on purchases.
D) All of the above.

Question

Quizplus · Accepted Answer

Organizations that receive substantial support from outside contributors find it particularly important to have Section 501c3 status because contributions made to such organizations are deductible by the donor when computing income and estate taxes.

What Is the Principal Advantage of Having 501c 3 Status