Not-for-Profit Organizations

Question 1 of 10

Medal-premium 1

The term that means information skewed toward a particular belief with a tendency to have little or no factual basis is

Select one of the following:

  • Political influence.

  • Legislation.

  • Propaganda.

  • Lobbying.

Question 2 of 10

Medal-premium 1

The income most likely to be considered unrelated business income of a human service organization that provides immunizations to children in the community is

Select one of the following:

  • Rental of extra space in the building.

  • Regular sale of sweatshirts with the organization's logo on it at a price considerably above cost.

  • Interest and dividend income on investments.

  • Gain on the sale of equipment no longer needed by the organization.

Question 3 of 10

Medal-premium 1

The Internal Revenue Service may impose intermediate sanctions on all of the following transactions between a not-for-profit organization and its executive officer except

Select one of the following:

  • Excessive compensation.

  • More than the fair rental value for property owned by the officer.

  • A bargain on the sale of assets.

  • Fringe benefits comparable to those given to all employees.

Question 4 of 10

Medal-premium 1

Which of the following is a reason why an NPO might fail to qualify for tax-exempt status?

Select one of the following:

  • It is operated primarily for the benefit of its members.

  • Its officers are paid excessive wages.

  • Its primary purpose is to promote the passage of legislation favorable to institutions of higher education.

  • It has unrelated business income.

Question 5 of 10

Medal-premium 1

Which of the following not-for-profit organizations is most likely to be tax-exempt under IRC Sec. 501(c)(3)?

Select one of the following:

  • Beta Kappa Alpha Sorority.

  • Peaceful Dreams Cemetery Association.

  • Regional Association of Tree Trimmers.

  • Survivors of Breast Cancer Club.

Question 6 of 10

Medal-premium 1

Which of the following is a not a true statement about tax-exempt organizations?

Select one of the following:

  • They must be organized to serve the charitable needs of the public at large.

  • They must first become a not-for-profit corporation or charitable trust.

  • They are permitted to do some political lobbying if guidelines are met.

  • Their unrelated business income is taxed at corporate income tax rates.

Question 7 of 10

Medal-premium 1

All of the following are examples of acts or policies that are uniform across the United Stated for not-for-profit organizations except

Select one of the following:

  • Uniform Prudent Management of Investment Funds Act of 2006.

  • Model Charitable Solicitation Act.

  • Uniform Executive Compensation Act.

  • Volunteer Protection Act of 1997.

Question 8 of 10

Medal-premium 1

All of the following are reasons why the Internal Revenue Service (IRS) overhauled the Form 990 for tax years beginning in 2008 except

Select one of the following:

  • To minimize the burden of filing on tax-exempt organizations.

  • To shorten the time it takes to complete a return for large not-for-profit organizations.

  • To enhance transparency about the organization.

  • To allow the IRS to efficiently assess noncompliance.

Question 9 of 10

Medal-premium 1

A good measure of whether a not-for-profit organization is "liquid" and can meet its short-term obligations is

Select one of the following:

  • Percentage of total expenses spent on the program function as opposed to support function.

  • Total revenues divided by total expenses.

  • Current assets divided by current liabilities.

  • Percentage of unrestricted net assets to operating expenses.

Question 10 of 10

Medal-premium 1

A good measure of whether a not-for-profit organization is a "going concern" and can sustain its operations into the future is

Select one of the following:

  • Total revenues divided by assets.

  • Percentage of unrestricted net assets to operating expenses.

  • Percentage of total expenses spent on the program function as opposed to support function.

  • Public support divided by total fund-raising expenses.

Icon_fullscreen

Not-for-Profit Organizations

turquoise_cat
Quiz by , created over 2 years ago

Chapter 14

Eye 892
Pin 1
Balloon-left 0
Tags No tags specified
turquoise_cat
Created by turquoise_cat over 2 years ago
Close