Which of the following statements regarding a private foundation is not correct?
A) Only certain exempt organizations are classified as private foundations.
B) A donor who makes a contribution to a private foundation has identical tax consequences as a donor who makes a contribution to a public charity.
C) A private foundation may be subject to certain excise taxes because it is a private foundation.
D) A church is not a private foundation.
E) All of the statements are correct.

Question

Quizplus · Accepted Answer

A donor who makes a contribution to a private foundation does not have identical tax consequences as a donor who makes a contribution to a public charity. Donors to private foundations are subject to more restrictive deduction limits and additional requirements to maintain their tax-exempt status.

Which of the Following Statements Regarding a Private Foundation Is