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 […]