Philippines 3501 Final Exam Answers
3501 Final Exam Study Guide
Component Units
Is the entity a Primary Government? * All must be true: 1. Separately elected governing body 2. Legally Separate * Can sue and be sued * Can sell a lease property in its own name. IF all are true, it is a primary government and 3. Fiscally Independent creates its own financial statements in * Can do all: accordance to GAAP. * Establish a budget * Levy taxes or set rates and charges * Issue long-term debt or bonds.
Is it a component unit of the Primary Government? * If the primary government appoints a majority of the board * The primary government can use or access the organization’s resources * Primary …show more content…
* NPO corporation or limited liability company or a charitable trust. * Anyone can start an NPO * NPOs are often exempted from the taxes levied by the state and local governments. * Varies across the country and * NPO may have to file for specific tax exemption and document that the property is in use for charitable purposes to become tax exempt.
Lobbying and Political Activity of an NPO * The impact of excessive political activity on NPOs can be significant due to the harsh sanctions for voting these laws, as well as negative publicity that may harm future fundraising efforts. * The ultimate penalty is revocation of exemption from taxes, but more often fines are imposed for engaging in prohibited behavior. * No substantial part of a charity’s activities may involve conducting propaganda or otherwise attempting to influence legislation.
Federal Regulation * Charities serve the common good, so the federal government has encouraged NPOs and charitable contributions since the first revenue act in
Component Units
Is the entity a Primary Government? * All must be true: 1. Separately elected governing body 2. Legally Separate * Can sue and be sued * Can sell a lease property in its own name. IF all are true, it is a primary government and 3. Fiscally Independent creates its own financial statements in * Can do all: accordance to GAAP. * Establish a budget * Levy taxes or set rates and charges * Issue long-term debt or bonds.
Is it a component unit of the Primary Government? * If the primary government appoints a majority of the board * The primary government can use or access the organization’s resources * Primary …show more content…
* NPO corporation or limited liability company or a charitable trust. * Anyone can start an NPO * NPOs are often exempted from the taxes levied by the state and local governments. * Varies across the country and * NPO may have to file for specific tax exemption and document that the property is in use for charitable purposes to become tax exempt.
Lobbying and Political Activity of an NPO * The impact of excessive political activity on NPOs can be significant due to the harsh sanctions for voting these laws, as well as negative publicity that may harm future fundraising efforts. * The ultimate penalty is revocation of exemption from taxes, but more often fines are imposed for engaging in prohibited behavior. * No substantial part of a charity’s activities may involve conducting propaganda or otherwise attempting to influence legislation.
Federal Regulation * Charities serve the common good, so the federal government has encouraged NPOs and charitable contributions since the first revenue act in