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



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    Freedom Forum and Newseum


Modernizing the Budgeting, Planning and Forecasting Process

Posted on , updated on

Exempt Organization Tax08/06/2019


Nonprofit Accounting-Tax-Technology08/06/2019


In this episode of our Nonprofit Knowledge Center podcast series, we discuss how nonprofits are using technology to modernize the budgeting, planning and forecasting process.

Highlights from the 7th Annual Higher Education Taxation Institute

Posted on , updated on

Exempt Organization Tax07/22/2019


Nonprofit Accounting-Tax-Technology07/22/2019


In this podcast, T&T Tax Principal Mike Sorrells joins Laura Kalick, Esq. to discuss highlights and key takeaways from the 7th Annual Higher Education Taxation Institute.

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