Here are some selected highlights from NEO Law Group over the past year that we hope you’ll find helpful. 2014 was also highlighted by an addition to Erin’s family and Michele’s graduation and passage of the bar exam! Amazing year for all of us. Blog Posts Governance What Issues Should a...
UBIT / UNRELATED BUSINESS
UBIT – Issues for Shared Spaces
I will be speaking this week for The Nonprofit Centers Network on unrelated business income tax (“UBIT”) related issues faced by nonprofits providing shared space with other individuals or entities (you can register for the webinar here). As we’ve discussed in previous posts on UBIT, generally, net income...
UBIT: Advertisements vs. Qualified Sponsorship Payments
Generally, net income from unrelated business activities will be subject to the unrelated business income tax (”UBIT”) if the activity constitutes (1) a trade or business, (2) that is regularly carried on, and (3) is not substantially related to the furtherance of the organization’s exempt purpose. The IRS...
Social Enterprises: Nonprofits vs. For-Profit
I'm honored to be speaking tomorrow at the 2013 BoardSource Leadership Forum on Social Enterprises: Nonprofit vs. For-Profit. Here's the description in the program: As the activities of nonprofit and for-profit organizations continue to blur with the commercialization of charities and the growth of socially purposed taxable entities,...
Unrelated Business Taxable Income – What Doesn’t Count?
Revenues created by business ventures of nonprofits can result in unrelated business taxable income (“UBTI”) subject to the unrelated business income tax (“UBIT”), but it’s important to understand that not all revenues generated by unrelated businesses are subject to UBIT. And to be clear, if you have no UBTI,...
Independent Sector Public Policy Action Institute 2013: Key Issues in Tax Reform
Day Two of the Independent Sector Public Policy Action Institute kicked off with a session on tax reform moderated by Kyle Caldwell, Charles Stewart Mott Foundation, and divided into five hot topics. Charitable Deduction. Richard Schmalbeck, Duke University School of Law, discussed the availability of a charitable contribution deduction...
Unrelated Business Income and the Commerciality Doctrine
As is clearly determined (and as we’ve discussed several times on the Nonprofit Law Blog), in order to establish and maintain tax exemption under Section 501(c)(3), an organization must be primarily operated for an exempt purpose. What is less clearly determined, however, is when a 501(c)(3)’s tax exempt status...
Unrelated Business Income Tax Explained
In order to qualify as a tax-exempt organization under IRC Section 501(c)(3), an organization must be operated primarily for tax-exempt purposes. This parameter allows such nonprofit organizations to engage in a limited amount of business activity unrelated to the organization’s exempt purposes. Although a public charity generally does not...
Alliance for Community Media National Conference (Part Three)
Our final post of resources referenced in our session at the 2013 Alliance for Community Media National Conference, Nuts and Bolts of Nonprofits and Their People, with Syvia Strobel (ACM) and Deborah Vinsel(Thurston Community Television). Timely Nonprofit Issues Unrelated Business Activities: IRS Examination Area The underreporting of unrelated business taxable income...
IRS Report Focuses on Issues with Nonprofit Unrelated Business Income and Compensation
On April 25, 2013, the IRS released its Colleges and Universities Compliance Project Final Report (revised May 2, 2013), which stated the Service's plan to look at how nonprofits across the sector report unrelated business income (UBI) and use comparability data in setting compensation. The Report's Executive Summary concluded:...