Friday, May 3, 2024
Charitable Organizations

7.3.3 Basic Quiz -- Avoiding Financial Conflicts of Interest
Generally, to qualify as a tax-exempt entity, a charity must generally be able to demonstrate that it meets a public purpose.
     True      False
Transfers to charity that provide a substantial personal benefit to the donor are not deductible.
     True      False
It is not a problem for a charity to provide a portion of their net earnings to a private party.
     True      False
The rules against private inurement only apply to officers and directors.
     True      False
It is permissible for a charity to pay more than fair market rent to lease office space from a member of the charity's board of directors.
     True      False
To qualify as a tax-exempt organization, a charity must pass either an organizational test or an operational test.
     True      False
An organization that has substantial non-exempt activities can still qualify as a non-exempt organization
     True      False
Adopting good policies, such as having a board that operates independently, can help avoid conflicts of interest.
     True      False
A charity should consider adopting a Conflict of Interest Policy to govern how potentially interested persons (such as board members and officers) interact with the charity.
     True      False
There is no need for a charity to ask interested persons to complete a Conflict of Interest Questionnaire more than once.
     True      False



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