Earlier today, Emily and I presented Earned Income 101 for Nonprofits for Nonprofit Webinars. You'll find our PowerPoint presentation on the site. I've reproduced the introduction here: Many nonprofits use earned income as a source of revenue generation. For example, it was estimated in 2008 that nearly 70% of the $1.4 trillion generated by nonprofits came from […]
ubit
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 […]
The Profitable Side of Nonprofits – Part I: Earned Income
Recently, there has been much discussion about how business can take on a nonprofit flavor through social enterprise and new hybrid legal structures. Here, we would like to take a look at the profitable side of nonprofits in Part I and its relation to different legal structures in Part II. The idea of nonprofits earning […]
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 […]