Unrelated Business Income Tax (UBIT)

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While a nonprofit organization may be tax exempt, it may still be liable for tax on its unrelated business income. For most organizations, unrelated business income is income from a trade or business, regularly carried on, not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption.

Resources & Sample Documents

IRS.gov: Unrelated Business Income Tax (UBIT)

IRS.gov: Unrelated Business Income Defined

IRS.gov: Publication 598: Tax On Unrelated Business Income of Exempt Organizations

IRS.gov: Stay Exempt: an IRS site created especially for 501(c)(3) organizations

Minnesota Council of Nonprofits: Unrelated Business Income Tax (UBIT)

Independent Sector: Unrelated Business Income Tax (UBIT)

Harvard University Office of the Controller: Unrelated Business Income Tax (UBIT)