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

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    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

Understanding the New UBI Tax Silo Rules

Posted on , updated on

Exempt Organization Tax11/30/2018

Insights11/30/2018

Nonprofit Accounting-Tax-Technology11/30/2018

Podcasts11/30/2018

In this audio podcast, Tax Principal Debbie Kosnett and Senior Tax Manager Lisa Heller discuss what you need to know about the new unrelated business income silo rules.

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