Starting A 501c3 Nonprofit Organization (Part 2)

10 Questions | Total Attempts: 38

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Starting A 501c3 Nonprofit Organization (Part 2)


Questions and Answers
  • 1. 
    Which of the following activities does NOT qualify for a 501c3 tax-exempt status?
    • A. 

      Serving as a ministry

    • B. 

      Providing humanitarian support in a foreign country

    • C. 

      Organizing workshops and providing educational services to the community

    • D. 

      Providing commercial cleaning services

  • 2. 
    Which of the following is unlikely to qualify for 501c3?
    • A. 

      Church

    • B. 

      Private Foundation

    • C. 

      Social Club

    • D. 

      Public Charity

  • 3. 
    An organization must state one or more exempt purposes in its organizing document. What exempt purposes does section 501c3 list:
    • A. 

      Charitable, Educational, Scientific, and Religious

    • B. 

      Benevolent, Educational, Religious, and Cultural

    • C. 

      Charitable, Literary, Cultural, and Religious

    • D. 

      None of the above

  • 4. 
    Who does an exempt organization must make its exemption application and annual information returns available to?
    • A. 

      IRS

    • B. 

      Grantors

    • C. 

      General public

    • D. 

      None of the above

  • 5. 
    The effective date of exemption will be the exact date of incorporation if the organization applies for 501c3 tax-exempt status within ____months of incorporation?
    • A. 

      5 months

    • B. 

      10 months

    • C. 

      25 months

    • D. 

      27 months

  • 6. 
    When applying for a 501c3 tax-exempt status, churches need to prepare additional Schedule __ from form 1023.
    • A. 

      Schedule A

    • B. 

      Schedule B

    • C. 

      Schedule C

    • D. 

      Schedule F

  • 7. 
    Which is NOT a potential conflict of interest for a board member of a nonprofit?
    • A. 

      Board member selling a building to nonprofit

    • B. 

      Borrowing Funds from nonprofit

    • C. 

      Loaning Funds to nonprofit

    • D. 

      Serving as a volunteer

  • 8. 
    The board of directors responsibility is:
    • A. 

      To act on behalf of the organization and its best interests

    • B. 

      Take part in regular meetings of the Board

    • C. 

      Amend the corporation’s articles of incorporation and Bylaws

    • D. 

      All of the above

  • 9. 
    Which individual must be a resident of the state of incorporation?
    • A. 

      President

    • B. 

      Treasurer

    • C. 

      Registered agent

    • D. 

      Founder

  • 10. 
    501c3 application (form 1023) DOES NOT require the following information on the board of directors?
    • A. 

      Names

    • B. 

      Addresses

    • C. 

      Social security numbers

    • D. 

      Biographies

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