answersLogoWhite

0

Why are not-for-profit organizations given tax-exempt status?

Updated: 9/19/2023
User Avatar

EncofBizandFinance

Lvl 1
13y ago

Best Answer

NPOs are given tax-exempt status because as IRS Code Section 501 states, "no part of the net earnings shall inure to the benefit of, or be distributed to, its members, trustees, officers, or other private persons."

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why are not-for-profit organizations given tax-exempt status?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is an ascribed status?

It can be defined as followed. A status that can not be earned, it is assigned.


to what extent is a person's status ascribed at birth?

An ascribed status is a social status that a person is given from birth or assumes later in life


What was the nickname given to the New Deal's many organizations?

Alphabet Agencies


When was Tamil language given the classical language status?

2004


How do you Define status and explain how it is associated with power?

In a social context, status refers to an individual's relative position in a social hierarchy. It is associated with power because individuals with higher status often have more influence, resources, and authority within a society or a group due to the perceived importance and respect accorded to them by others. Power dynamics within social structures can be influenced by factors such as wealth, occupation, education, and social connections, all of which contribute to an individual's status.


How did the Spanish-American War change America's status among the great powers of that era?

It was given the status of a world power.


Which organisation is given the status of micro finance regulatory authority?

Sidbi


The theory of continental drift was given a scientific status during the?

1960


How did Shakespeare achieve an elevated social status?

He was given a coat of arms.


Is given to state and local party organizations for party building activities?

Australian Ballot


What is given to state and local party organizations for party-building activities?

Soft money


Who were given the status of active citizens in France?

Only men above 25 years of age who paid taxes equal to at least 3 days of a labourer = were given the status of active citizens in France. =