A nonprofit that qualifies under Section 501(c)(3) must limit its expenditures on ______.

Question

Quizplus · Accepted Answer

Nonprofits that qualify under Section 501(c)(3) are tax-exempt organizations, which means they cannot engage in any substantial lobbying activities. They may engage in some lobbying activities as long as it does not comprise a substantial part of their overall activities and expenditures. However, if a nonprofit engages in excessive lobbying or violates the lobbying restrictions, it may lose its tax-exempt status. Therefore, option A is the correct answer.

A Nonprofit That Qualifies Under Section 501(c)(3) Must Limit Its