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GiftLaw Pro Home   >  Chapter 7 - Charitable Organizations  >  7.1 Public Charities  >  7.1.5 Form 1023 and Form 990  >  Basic Quiz

Basic Quiz - 7.1.5 Form 1023 and Form 990

1. Churches and organizations other than private foundations with gross receipts of $5,000 or less need not file Form 1023.
           
2. 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.
           
3. 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.
           
4. 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.
           
5. A church must complete Schedule B to demonstrate the facts and circumstances that support its exempt status as a church.
           
6. A school must establish that it has racially nondiscriminatory policies for exemption.
           
7. Medical research organizations operated in conjunction with a hospital are considered hospitals for purposes of exemption under 501(c)(3).
           
8. Supporting organizations must be "operated, supervised or controlled by" one or more publicly supported organizations.
           
9. Churches are required to file Form 990, the annual return of organizations exempt from income tax.
           
10. Form 990 is available for public inspection, and for some people, serves as the primary or sole source of information about a particular organization.