Are there limitations on the activities in which a tax-exempt organization may engage?
Depending upon the nature of its exemption, a tax-exempt organization may jeopardize its tax-exempt status if it engages in certain activities. For example, section 501(c)(3) charitable organizations may not intervene in political campaigns or conduct substantial lobbying activities. See Types of Tax-Exempt Organizations or Publication 557 for more information.
You may also request a ruling regarding the effect of a proposed transaction on an organization's tax-exempt status. See the current Revenue Procedure for making such a request.
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