Explains three conditions that determine whether a tax-exempt organization is engaging in a taxable activity. Lists three activities that require, and seven activities that do not require, the payment of income taxes by tax-exempt organizations. Discusses the assessment and payment of income taxes. (BC)

Addresses common questions regarding the operation of nonprofit child care. Questions concern qualifications for nonprofit corporations; whether nonprofit organizations can make a profit; limits on salaries and rents paid by nonprofit organizations; and whether nonprofit organizations can have a for-profit subsidiary. (GLR)

Reviews IRS regulation of day care center fund-raising activities. Contributions are not deductible when receipts exceed certain amounts, sales claim fair market value, or the cost of gift tokens exceeds a certain limit. Fund-raising violations can result in fines and extensive IRS investigations. (DG)

Offers insights into the effects of federal and state unemployment compensation laws on child care operations, including for-profit centers, nonprofit agencies, and family home care. (BB)