Nonprofit Radio: Earned Income & Unrelated Business Income Tax

This month on Tony Martignetti Nonprofit Radio, Emily and I discussed with Tony the topics of earned income and the unrelated business income tax.  You can listen to a recorded version here or check it out (in a few days) on ITunes. Frequently Asked Questions Note:  To provide a more easily understandable overview, we answered these in general terms […]

IRS Interim Report on Nonprofit Colleges and Universities Compliance Project

The Internal Revenue Service released an interim report (the "Report") on May 7, 2010, summarizing responses to compliance questionnaires sent to 400 public and private colleges and universities in October 2008.  The Report and underlying project principally focused on (1) the conduct and reporting of exempt or other activities that may generate unrelated business taxable […]

Management Service Organizations and Unrelated Business Income Tax

Nonprofit organizations are often seeking better, cost-effective ways to handle administrative services, for example, by using a management service organization (MSO). An MSO can be generally defined as an organization that primarily exists to provide administrative services to multiple organizations. An MSO will generally charge fees for providing such services and this raises the issue […]

UBIT: Scientific Purposes and Scientific Research

In the context of scientific organizations, the IRS states that unrelated business income tax (UBIT) issues generally occur in two situations: (1) a scientific research organization (SRO) engaging in various projects or (2) a tax-exempt non-SRO engaging in research. “Scientific purpose” and “scientific research” are commonly seen phrases in the governing documents for 501(c)(3) tax-exempt […]