Question

Fiction County Sheltered Workshop (FCSW) is a 501(c)(3) corporation. Day Services, a C corporation operating in the same county, has offered to buy FCSW. If this transaction occurs, which of the following happens to the money Day Services will pay for FCSW?

Answer 1

The answer is: The money will go to another nonprofit organization.

Step-by-step explanation:

Organizations under section 501(c)(3) are nonprofit organizations which are tax exempt, including public charities, private foundations and private operating foundations. When nonprofit organizations are sold, the money resulting from the sell must go to another nonprofit organization.