CHAPTER 23 EXEMPT ENTITIES

Give an
example of the indicated types of exempt organizations.
a. League of Women
Voters.
b. Teachers’
association.
c. American Plywood
Association.
d. Six Flags over Texas
theme park.
e. Salvation Army.

2.
§ 501(c)(3) organization
3.
§ 501(c)(4) civic league
4.
§ 501(c)(5) labor organization
5.
§ 501(c)(6) business league
6.
Not an exempt organization

Match the following
statements with the correct description.
a. Exempt organization
under § 501(c)(3).
b. May not be subject to
Federal income tax.
c. Permits limited
lobbying activities.
d. Exempt organization
under § 501(c)(7).
e. Carries on a trade or
business for the benefit of an exempt organization and remits its profits to
the exempt organization.

7.
Exempt organization
8.
Feeder organization
9.
University of Virginia
10.
Kentwood Rodeo Club

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Match the following
statements.
a. Carries on a trade or
business for the benefit of an exempt organization, remits its profits to the
exempt organization, and is notexempt
from Federal income tax.
b. May be subject to
some Federal income taxation and classification may adversely affect amount of
charitable contributions received.
c. Tax imposed for
engaging in transactions with disqualified persons.
d. Enables certain
exempt organizations to engage in lobbying activities on a limited basis.
e. Tax imposed on
investments that enable a private foundation to control unrelated businesses.