Monday, April 29, 2024
Charitable Organizations

7.1.9 Basic Quiz -- Supporting Organizations vs. Private Foundations
When donors make cash contributions to supporting organizations (SOs), they can deduct the value of their contributions up to 50% of their adjusted gross income.
     True      False
When appreciated property is donated to a private foundation, the deduction is based on the property?s fair market value.
     True      False
Non-functionally integrated Type III SOs are required to make some type of distribution to their supported charities on an annual basis.
     True      False
Type I and Type II SO donors typically enjoy more control than donors who establish private foundations.
     True      False
Supporting organizations and private foundations must, upon formation, designate the charities that they will support.
     True      False
Private foundations, not supporting organizations, must pay a tax on investment income.
     True      False
Supporting organizations are not subject to the excess benefit transaction rules that apply to public charities.
     True      False
If the excess business holding rules are violated, private foundations and supporting organizations are both given three years to sell the business interest.
     True      False
The rule prohibiting jeopardizing investments includes investments that show a lack of reasonable business care and prudence in providing for the long and short-term financial needs of a private foundation.
     True      False
Supporting organizations are not permitted to participate in political campaigns. In contrast, private foundations may participate in lobbying efforts.
     True      False



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