The key difference for a nonprofit organization with 501(c)(3) designation is that it enjoys local, state, and federal tax exemptions. This designation allows them to receive tax-deductible contributions and exempts them from certain taxes, which is not necessarily the case for other types of nonprofit organizations. While all nonprofits operate in accordance with their mission and are governed by a board of directors, the tax benefits are a significant distinguishing factor for 501(c)(3) organizations. Additionally, 501(c)(3) organizations can earn a profit, but those profits must be reinvested into the organization's mission and activities.
A nonprofit organization with 501(c)(3) designation differs from other nonprofits in that the 501(c)(3) nonprofit organization(1 point)
Responses
operates in accordance with its stated mission.
operates in accordance with its stated mission.
enjoys local, state, and federal tax exemptions.
enjoys local, state, and federal tax exemptions.
is governed by a board of directors.
is governed by a board of directors.
does not earn any profit.
does not earn any profit.
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