Answer the following questions.

1.Why are nonprofits referred to as Exempt Organizations by the IRS?

2.What types of organizations are covered by Internal Revenue Code Section 501(c )(3)

3.How do nonprofits apply for an exemption?

4.What are the elements on the Form 1023?

5.What information is required on the Form 990?

6.How is this information on the 990 similar to the information required on the 1023?

7.What elements of governance are disclosed on Form 990?

8.What are common revenue sources for nonprofits?

9.What three areas are expenses divided into on form 990?

10.Where are programs defined in the Form 990? What information on programs within the nonprofit are disclosed?

11.Identify some of the prohibited transactions listed on the Form 990?