Wednesday, May 1, 2024
Charitable Organizations

7.2.9 Basic Quiz -- Private Operating Foundations
A private operating foundation (POF) is a type of private foundation granted tax-exempt status under Sec. 501(c)(3).
     True      False
A POF is unlike a traditional private foundation in that a POF carries on activities in furtherance of its charitable purpose.
     True      False
Art museums are classic examples of a POF.
     True      False
Since a POF is a type of private foundation, the POF is subject to the 5% minimum charitable distribution requirement.
     True      False
Donor's whom contribute to POFs are only able to claim a deduction for their cost basis in the contributed property.
     True      False
Ladee Lucke is a wealthy landowner in Nevada. Ms. Lucke has made an annual contribution to a private foundation in the Clark County area every year for the last 10 years. This year, Ms. Lucke has decided to make her contribution to a private operating foundation, a local art museum. Ms. Lucke has settled on contributing $10,000. Ms. Lucke's cash contribution is deductible up to 50% of her adjusted gross income in the year of contribution.
     True      False
In order to qualify as a POF, a foundation must meet an "income test."
     True      False
The "income" test is the only test that a charity must meet to be classified as a POF.
     True      False
The endowment test requires a charity to spend more than 3/4 on activities in furtherance of its exempt purpose.
     True      False
If a POF fails to qualify as a POF in any given year, POF status will be withdrawn for the life of the foundation.
     True      False



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