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GiftLaw Pro Home   >  Chapter 7 - Charitable Organizations  >  7.2 Private Foundations  >  7.2.1 Classification as a Private Foundation  >  Basic Quiz

Basic Quiz - 7.2.1 Classification as a Private Foundation

1. Sec. 501(c)(3) of the Internal Revenue Code contains the provisions for charitable organizations and private foundations.
           
2. Churches, hospitals, museums and schools are all examples of private foundations.
           
3. A single wealthy family typically forms a private foundation.
           
4. Charitable organizations are classified as private foundations by default unless they apply for public charity status.
           
5. Churches and public charities with gross receipts over $50,000 in a taxable year may be classified as a public charity without filling out IRS Form 1023.
           
6. Operating foundations conduct their own charitable activities rather than merely providing funds for use by other charities.
           
7. Donations to operating foundations are subject to the same deductibility limitations as donations to private foundations.
           
8. A conduit foundation is a foundation that distributes 90 - 95% of all contributions it receives in a particular year.
           
9. Community foundations are classified as public charities.
           
10. Contributions to a conduit foundation may, under certain circumstance, be treated the same as contributions to public charities.