A not-for-profit organization is granted its legal status by which of the following?
A) Federal government.
B) State government.
C) The city or county in which it resides.
D) The courts.

Question

Quizplus · Accepted Answer

A not-for-profit organization is granted its legal status by the state government where it is incorporated or registered. The federal government has requirements and regulations for tax-exempt status and may oversee certain types of not-for-profit organizations, but it does not grant the initial legal status. The city or county in which the organization resides may have specific regulations and requirements for operating within their jurisdiction, but they do not grant legal status. The courts may become involved in legal disputes related to the organization, but they do not grant the initial legal status.

A Not-For-Profit Organization Is Granted Its Legal Status by Which