Franchises and Nonprofit Organizations Quick Check5 of 55 of 5 ItemsQuestionA nonprofit organization with 501(c)(3) designation differs from other nonprofits in that the 501(c)(3) nonprofit organization(1 point)Responsesis governed by a board of directors.is governed by a board of directors.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.does not earn any profit.does not earn any profit.

Answer 1

The correct response is: enjoys local, state, and federal tax exemptions.

A 501(c)(3) nonprofit organization is specifically recognized by the IRS as a charitable organization, which enables it to receive tax-deductible contributions and enjoy various tax exemptions at the local, state, and federal levels.