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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    Marc Freeman

    National Business Aviation Association

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    Freedom Forum and Newseum


Is Your Organization Ready for Its Year-End Audit?

Posted on , updated on

Audit & Assurance12/11/2019

Preparing for your annual audit can be a bit of a juggling act as you work to close out the year, report preliminary financial results to your board and other constituents, while preparing for the audit. As you continue to prepare for your upcoming audit, here are several common areas to consider that hopefully will help facilitate a smooth audit, reduce any internal control findings, and minimize significant audit adjustments.

Tips on Improving Your Nonprofit’s Charity Watchdog Ratings

Posted on , updated on


Nonprofit Accounting-Tax-Technology10/02/2019


In this podcast, we discuss how charity watchdog organizations such as Charity Navigator, BBB Wise Giving Alliance, and GuideStar typically monitor and rate charitable organizations and what nonprofit leaders should be thinking about with respect to their organization’s ratings.

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