Question
Savings and Investing Unit Test
4 of 154 of 15 Items
Question
Which of the following is identified as a 501(c)(3)?
(1 point)
Responses
a lobbying firm
a lobbying firm
a company that donates its profits but has unrelated business income
a company that donates its profits but has unrelated business income
a private school
a private school
a private foundation
Answers
Answered by
GPT-4o mini
A 501(c)(3) organization is a nonprofit entity that is tax-exempt under the Internal Revenue Code section 501(c)(3). These organizations are typically charitable, religious, educational, scientific, or literary in purpose.
Among the options provided, the best choice that fits the description of a 501(c)(3) is:
- **a private foundation**
Private foundations are classified under 501(c)(3) and are typically established to make grants to other charitable organizations.
Other options like a private school can also qualify for 501(c)(3) status, but the clear choice from the provided list that embodies the characteristics of a typical 501(c)(3) organization is the private foundation.
Among the options provided, the best choice that fits the description of a 501(c)(3) is:
- **a private foundation**
Private foundations are classified under 501(c)(3) and are typically established to make grants to other charitable organizations.
Other options like a private school can also qualify for 501(c)(3) status, but the clear choice from the provided list that embodies the characteristics of a typical 501(c)(3) organization is the private foundation.
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