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GiftLaw Pro Home   >  Chapter 7 - Charitable Organizations  >  7.1 Public Charities  >  7.1.1 Types of Public Charities  >  Basic Quiz

Basic Quiz - 7.1.1 Types of Public Charities

1. Charities must be organized partly for charitable purposes.
           
2. While charities must be operated for charitable purposes, charitable purposes need not be the exclusive purpose of the charitable organization.
           
3. Charitable purposes include only religious and scientific purposes.
           
4. The operational test examines the manner in which the charity actually operates as opposed to the way the founding documents direct the organization to act.
           
5. There are only two ways in which to measure whether a charity's activities are for a charitable purpose: Public benefit and private inurement.
           
6. The prohibition against private inurement requires that a charity not give benefits directly to people that are closely related to the charity.
           
7. There is only one way to qualify as a public charity, and that is to operate as a traditional public charity.
           
8. Internal Revenue Code Sec. 509(a) describes the three main ways that a charitable organization may qualify as a public charity.
           
9. Churches and schools are both examples of charitable organizations that are not typically classified as public charities.
           
10. A charity can demonstrate that it has broad public support by showing that one-third of the total support received by the charity over the past four years is from the general public.