41.Entities that are tax-exempt under IRS Section 501(c)(3) are permitted to endorse political candidates or attempt to influence legislation.
42.When computing Unrelated Business Income Tax, charities are permitted to deduct ordinary and necessary business related expenses and the first $1,000 of income is not taxed.
43.Section 501(c)(3), exempt organizations are prohibited from supporting political candidates or campaigning to influence legislation.
44.To apply for tax-exempt status, an organization must complete an IRS Form 1023.
45.Tax-exempt entities are not allowed to make contributions to political campaigns or they may lose their tax-exempt status.
46.Tax-exempt organizations are required to file Form 990 by the 15th day of the 9th month following the organization’s taxable year.
47.A tax-exempt organization must pay income taxes on income generated from trade or business activities unrelated to the entity’s tax-exempt purposes.
Evaluating Performance
48.The three major user groups identified by the GASB are (1) citizen groups, (2) legislative and oversight officials, and (3) investors and creditors.
49.Bonds which carry the full faith and credit of a government are called revenue bonds.
50.Bonds which carry the full faith and credit of a government are called general obligation bonds.