Loose-leaf For Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781260190083
Author: Jacqueline L. Reck James E. Rooks Distinguished Professor, Suzanne Lowensohn, Daniel Neely
Publisher: McGraw-Hill Education
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Question
Chapter 13, Problem 18EP
a.
To determine
Ascertain the total amount of support required to meet the Public Support Test.
b.
To determine
Identify and explain whether the organization is considered as public charity.
c.
To determine
Identify and explain whether the organization is considered the same as in part b, as per the new contribution.
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To send a mailing, a private not-for-profit charity spends $100,000. The mailing solicits donations and provides educational and other information about the charity. Which of the following is true? Choose the correct.a. No part of the $100,000 can be reported as a program service expense.b. Some part of the $100,000 must be reported as a program service expense.c. No authoritative guidance exists, so the organization can allocate the cost as it believes best.d. Under certain specified circumstances, the organization should allocate a portion of the $100,000 to program service expenses.
The Let's Read organization is a public charity under Internal Revenue Code IRS section 501(c)(3). It had a total support of the following.
1. United way support $10,000
2.Grant from state. $25,000
3. Grant from city $10,000
4. Contribution from individuals $261,000
5. Investment income. $1,000
6. Revenue from sales of books $12,000
Total =$319,000
Of the $261,000 received from contributors, $240,000 came from four contributors, each giving $60,000, the other $21,000 came from small individual contributions.
Respond to the following.
1. Calculate the total amount of support that qualifies as public support in meeting the public test to escape private foundation status.
2. Is the organization considered a public charity ?why?
3. If the organization had received $200,000 from one individual and the remaining $61,000 from many small individual contribution, would the not-for-profit…
To send a mailing, a private not-for-profit charity spends $100,000. The mailing solicits donations and provides educational and other information about the charity. Which of the following is true?
No part of the $100,000 can be reported as a program service expense.
Some part of the $100,000 must be reported as a program service expense.
No authoritative guidance exists, so the organization can allocate the cost as it believes best.
Under certain specified circumstances, the organization should allocate a portion of the $100,000 to program service expenses.
Chapter 13 Solutions
Loose-leaf For Accounting For Governmental & Nonprofit Entities
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Jan and Dean decided to form a charitable...Ch. 13 - Prob. 17.2EPCh. 13 - Prob. 17.3EPCh. 13 - Prob. 17.4EPCh. 13 - Prob. 17.5EPCh. 13 - Prob. 17.6EPCh. 13 - Prob. 17.7EPCh. 13 - Prob. 17.8EPCh. 13 - Prob. 17.9EPCh. 13 - When a tax-exempt organization dissolves, the...Ch. 13 - Prob. 18EPCh. 13 - Use Illustration 13-4 as a guide in completing...Ch. 13 - Prob. 20EPCh. 13 - Prob. 21EPCh. 13 - Prob. 22EP
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