PA 571 Week 8 Final Exam
(TCO A) Identify four different types of nonprofit entities afforded 501(c) tax exempt status and describe the nature of their activities that afford them that status. In addition, identify an area of operations that might threaten that tax exempt status. (Points: 25)
Answer – The different types of non-profit entities that are afforded the 501(c) tax exempt status include charitable institutions such as religious, educational, scientific, and also some fraternal, cemetery, and veterans' organizations. These organisations perform services that are a nature of helping the underprivileged in the society and are there for helping and reaching out to poor and less fortunate, and hence due to this charitable work, they are accorded the 501(c) status. If these organisations deviate from their main objectives and serve a larger society or are in the business of making profits like a traditional business, then they would be in danger of losing the tax exempt status.
Answer – The different types of non-profit entities that are afforded the 501(c) tax exempt status include charitable institutions such as religious, educational, scientific, and also some fraternal, cemetery, and veterans' organizations. These organisations perform services that are a nature of helping the underprivileged in the society and are there for helping and reaching out to poor and less fortunate, and hence due to this charitable work, they are accorded the 501(c) status. If these organisations deviate from their main objectives and serve a larger society or are in the business of making profits like a traditional business, then they would be in danger of losing the tax exempt status.
3. (TCO B) Responsibilities of a nonprofit organization's governing board consist of legal and fiduciary, oversight, fund-raising, and representation of constituencies and viewpoints. Address the oversight duties of the governing board. (Points: 25)
Answer – One of the major duties of the governing broad is to provide strong financial oversight to the organization. This includes ensuring that the organization keeps complete, current, and accurate financial records with the board reviewing and providing guidance on the records. The board must also institute policies and procedures to ensure that the organization manages and invests its funds responsibly, ethically and lawfully and for the purpose the organization exists. The way the ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, A++ Graded available
Answer – One of the major duties of the governing broad is to provide strong financial oversight to the organization. This includes ensuring that the organization keeps complete, current, and accurate financial records with the board reviewing and providing guidance on the records. The board must also institute policies and procedures to ensure that the organization manages and invests its funds responsibly, ethically and lawfully and for the purpose the organization exists. The way the ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, A++ Graded available
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