7.1.5 Basic Quiz -- Form 1023 and Form 990

Churches and organizations other than private foundations with gross receipts of $5,000 or less need not file Form 1023.

True False

The articles of incorporation of a 501(c)(3) must state that an organization will not, as a substantial part of its activities, attempt to influence legislation.

True False

An organization must report the names of its five highest compensated employees who receive compensation of more than $100,000 per year and their compensation amounts.

True False

If the organization attempts to influence legislation, it must indicate whether these activities are "insubstantial" or that it is making an election under 501(h) to have its legislative activities measured by expenditures by filing Form 5768.

True False

A church must complete Schedule B to demonstrate the facts and circumstances that support its exempt status as a church.

True False

A school must establish that it has racially nondiscriminatory policies for exemption.

True False

Medical research organizations operated in conjunction with a hospital are considered hospitals for purposes of exemption under 501(c)(3).

True False

Supporting organizations must be "operated, supervised or controlled by" one or more publicly supported organizations.

True False

Churches are required to file Form 990, the annual return of organizations exempt from income tax.

True False

Form 990 is available for public inspection, and for some people, serves as the primary or sole source of information about a particular organization.