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According to the U

Question 32

Multiple Choice

According to the U.S. Internal Revenue Service, "A section 501(c) (3) [a.k.a. non-profit] organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of a section 501(c) (3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization."
-Refer to the scenario above.The IRS rule implies that ________.


A) it is illegal for a nonprofit organization to make a profit
B) a nonprofit organization must make zero profit (break even)
C) it is illegal for a nonprofit organization to maximize the profit
D) a nonprofit organization can use its profit only to further its mission

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