Which of the following is not true about not-for-profit corporations:
A)formed to serve some public purpose rather than financial gain
B)exempt from paying income taxes if its purpose is religious,educational, scientific or literary and its revenues are less than $1 million
C)those who contribute to not-for-profit corporations can take a tax deduction
D)there are more than 1.5 million not-for-profit organizations in the U.S.

Question

Quizplus · Accepted Answer

The statement about not-for-profit corporations being exempt from paying income taxes if their purpose is religious, educational, scientific, or literary and their revenues are less than $1 million is not accurate. Tax exemption for not-for-profit organizations does not depend on their revenue amount but on their compliance with IRS regulations regarding their purpose and operations.

Which of the Following Is Not True About Not-For-Profit Corporations