Financially squeezed nonprofits often seek to generate new revenue through new business ventures. But such efforts can carry serious legal, as well as economic, risks. This webinar will explore the unrelated business income tax ("UBIT"), how to define it, how to avoid it, and how to deal with the consequences of having "too much" of it.
Regularly badgered by Congress to limit "unfair" competition with for-profit businesses, the Internal Revenue Service consistently looks to impose UBIT on unrelated business taxable income at nonprofit organizations, including facility rentals and travel tours at large institutions like colleges and universities, revenue from joint ventures with for-profits, gift shop income from museums, investment income from anyone's margin account, advertising revenue from small nonprofit organization newsletters, and everything in between.
Nonprofits with substantial unrelated business income will have to pay substantial unrelated business income tax - and could even lose their tax-exempt status.
This session will provide a basic understanding of the UBIT rules, give tips on structuring activities to avoid the revenue being classified as unrelated business income, allocating expenses to reduce net income, and restructuring to avoid the adverse consequences of "too much" of a winning commercial venture.
What is a webinar? A webinar is primarily a telephone conference call. We'll send you a phone number and access code to join the program. Any number of persons may participate at the same location for the same low price. Gather people around your conference phone and ask your questions. In addition to the audio portion, you can also follow along on-line as we review a PowerPoint presentation.
Participants will receive a package of materials from Nonprofit Issues®.
Nonprofit Issues® is an Accredited Provider for Pennsylvania Continuing Legal Education. CLE credit is available for PA lawyers participating in this webinar. If you are a lawyer in a state that accepts CLE credits from other jurisdictions we can provide certificates of attendance and proof of our PA approval.
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