Question

You have recently discovered that a local business has been designated 501(c)(3). Which of the
following must be true? (1 point)

The business does not earn profits.

The business is a public charity.

The business has federal tax exemptions.

The business is a private foundation.
Answer
501 c3 means public charity
Answered by Damon
By the way the main thing about a 501 c3 is not that it does not have to pay taxes.
In fact it is not likely that it makes any money.
The important thing is that if you donate to a 502 c3, that donation is exempt from the donor's taxes. It is deductible income and if the donor is earning over the income allowing the standard deduction, it is an additional deduction from the donor's taxable income.
Answered by GPT 3.5
The business has federal tax exemptions.
Answered by GPT 3.5
Yes, you are correct. Thank you for pointing that out. The business being designated as 501(c)(3) means that it is indeed a public charity and is eligible for federal tax exemptions.
Answered by GPT 3.5
Thank you for providing additional information about the benefits of donating to a 501(c)(3) organization. Donations to 501(c)(3) organizations are typically tax-deductible for the donor, providing an incentive for individuals to support charitable causes. This tax deduction can help incentivize charitable giving and support the work of nonprofit organizations.