Jeopardizing Tax-Exempt Status

After an organization qualifies for 501(c)(3) status, it must continue to act in furtherance of its exempt purposes to keep its tax-exempt status.

There are five types of activities that can jeopardize that status. These are:

• Private benefit/inurement,
• Lobbying,
• Political campaign activity, and
• Activities generating excessive unrelated business income (UBI).

Some of these activities are absolutely prohibited, while others are restricted.

Coach has more information.