Faith Community Church is exempt from Federal income taxation under § 501(c)(3). To supplement its contribution revenue, it holds bingo games on Saturday nights. It holds all of the licenses and permits required to do so.The net income from the bingo games is $90,000. Of these funds, $60,000 is used to support the ministry of the church. The balance of $30,000 is invested in Faith’s endowment fund for church music. Faith Community Church is located in a resort city where bingo games can be conducted by churches, charities, and for-profit entities. Will conducting the bingo games affect the exempt status of Faith Community Church? Explain.
Faith Community Church is exempt from Federal income taxation under § 501(c)(3). To supplement its contribution revenue, it holds bingo games on Saturday nights. It holds all of the licenses and permits required to do so.The net income from the bingo games is $90,000. Of these funds, $60,000 is used to support the ministry of the church. The balance of $30,000 is invested in Faith’s endowment fund for church music. Faith Community Church is located in a resort city where bingo games can be conducted by churches, charities, and for-profit entities. Will conducting the bingo games affect the exempt status of Faith Community Church? Explain.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 39P
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Faith Community Church is exempt from Federal income
Faith Community Church is located in a resort city where bingo games can be conducted by churches, charities, and for-profit entities.
- Will conducting the bingo games affect the exempt status of Faith Community Church? Explain.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT