One of the most important and possibly the most daunting tax is the unrelated business income tax. These are levied on services that are not substantially related to an exempt organization’s mission. Nonprofits are increasingly turning to alternate revenue streams, including some commercial-type activities, to supplement traditional sources of income. Unrelated business income may be generated through:

  • Periodicals and other publications
  • Websites and other digital media
  • Alternative investments
  • Rental of real or personal property
  • Product sales
  • Consulting services
  • Facilities operations (cafes, gift shops)
  • “Particular services” (unique to trade associations)
  • Certification activities (charitable organizations)
  • “Commercial” activities

 

We have extensive experience with the unrelated business rules, and can help your organization sort through the complex maze of laws and regulations. We also offer consulting services on a number of tax issues including:

  • Analysis of uncertain income tax positions
  • Review of royalty and sponsorship contracts
  • Multistate UBI analysis
  • Taxation of subsidiaries and related entities
  • Federal and state tax audits
  • Transactional analysis

 

Sample UBI Resources

 

Certification Programs: They’re Not Taxable, Unless They Are

Charity Auctions: More Tax Rules Than You Thought!

Alternative Investments: Compliance and Tax Issues Galore

Partnership Investments – What to Review on a Schedule K-1 as a Tax-Exempt Partner

Lessons about Unrelated Business Income from the IRS’ Colleges and Universities Compliance Project

 

Testimonials

  • “After reviewing several, more expensive budgeting tools that integrate with Microsoft Dynamics SL, NBAA choose to implement Full Circle Budget. We are very pleased with our decision. Both our accounting department and departmental managers find Full Circle Budget easy to use. I would highly recommend Full Circle Budget to any Microsoft Dynamics SL user looking for an Excel based budgeting tool.”

    Marc Freeman

    National Business Aviation Association

  • We are extremely satisfied with the services we receive from T3 Information Systems and wish that all our business partners were as pleasant, helpful, and reliable. The staff at T3 is very responsive, knowledgeable and offer solutions to our problems….far exceeding our expectations. I very highly recommend T3 Information Systems and value our business partnership greatly!  

    Sherry Minear, Director of Finance

    Freedom Forum and Newseum

INSIGHTS & RESOURCES

2019 Nonprofit CFO of the Year Awards: Celebrating Nonprofit CFO Excellence

Posted on , updated on

Firm News05/30/2019

Insights05/30/2019

Help recognize the efforts and achievements of an exceptional CFO whose leadership has made an impact.  Nominate a CFO for the 2019 Nonprofit CFO of the Year Awards. Winners will be formally recognized at the 2019 Nonprofit CFO of the Year Awards Luncheon on October 10, 2019 at the Capital Hilton in Washington DC.

Important Compliance Updates for DC Organizations

Posted on , updated on

Exempt Organization Tax05/29/2019

Insights05/29/2019

As states move to streamline their tax and reporting systems, more filings are being offered for submission through electronic channels such as state business portals. The District of Columbia has been no stranger to this phenomenon, with multiple portals available through their Office of Tax and Revenue (OTR), the Department of Consumer and Regulatory Affairs (DCRA), and the Department of Employment Services (DOES).

Resources Center