Audits Show Widespread Underreporting of UBI | The NonProfit Times

Audits Show Widespread Underreporting of UBI | The NonProfit Times: Unreported unrelated business income in higher education was found in almost every case examined by the Internal Revenue Service (IRS).

“The audits identified some significant compliance issues at the colleges and universities examined,” said Lois Lerner, director, Exempt Organizations division of the IRS. “Because these issues may well be present elsewhere across the tax-exempt sector, all exempt organizations need to be aware of the importance of accurately reporting unrelated business income and providing appropriate executive compensation.”

Publication 598 (03/2012), Tax on Unrelated Business Income of Exempt Organizations

Publication 598 (03/2012), Tax on Unrelated Business Income of Exempt Organizations: Table of Contents

Publication 598 - Introductory Material
What's New

New Publication on Tax on Unrelated Business Income of Exempt Organizations | Planned Giving Design Center

New Publication on Tax on Unrelated Business Income of Exempt Organizations | Planned Giving Design Center: The IRS has released Publication 598, Tax on Unrelated Business Income of Exempt Organizations, in which it describes which organizations are subject to the tax, return filing requirements, what an unrelated trade or business is, and how to calculate unrelated business taxable income.

4 UBIT facts to understand - TheNonProfitTimes

4 UBIT facts to understand - TheNonProfitTimes: So, you think you know UBIT? It is no secret that unrelated business income tax (UBIT) is a huge headache, as well as a catastrophe waiting for any nonprofit unaware of it.

In his book “Finance Fundamentals for Nonprofits” Woods Bowman presents a few tidbits about UBIT, some of which are well-known and others that are more obscure. All of them could spell trouble for the unaware. For example:

SOI Tax Stats - Exempt Organizations' Unrelated Business Income (UBI) Tax Statistics

SOI Tax Stats - Exempt Organizations' Unrelated Business Income (UBI) Tax Statistics: Snapshot of Unrelated Business Income Tax Statistics

Because tax-exempt organizations generally operate for charitable or other beneficial purposes, most income that they receive is exempt from tax under the Internal Revenue Code. Tax-exempt organizations are permitted to engage in income-producing activities that are considered to be unrelated to their exempt purposes. However, income from these activities may be taxable. This study measures income, deductions, and tax imposed on tax-exempt corporate and trust entities' unrelated business income. Data are compiled from Form 990-T, Exempt Organization Business Income Tax Return.

Social Entrepreneurs 2011: A Guide to 501(c)(3) Nonprofits With Earned Income

Social Entrepreneurs 2011: A Guide to 501(c)(3) Nonprofits With Earned Income: "A 501(c)(3) nonprofit can still generate earned income. And plenty do. The National Center for Charitable Statistics estimates that nearly 70 percent of the $1.4 trillion generated by nonprofits in 2008 came from the sale of goods and services."

Unrelated Business Income - StayExempt.org

Unrelated Business Income - StayExempt.org: "Take this course and you will learn how to:

* Determine which of your income-producing activities generate UBI using the UBI test;
* Apply applicable exceptions, exclusions, and deductions when calculating your UBI tax;
* Report your organization's UBI appropriately; and
* Conduct charitable gaming lawfully, and withhold and report gaming taxes appropriately."

The Nonprofit Quarterly | The Nonprofit Quarterly | Unraveling Development: Nothing Can or Should Substitute for Philanthropy, Part 1

From Nonprofit Quarterly

The Nonprofit Quarterly | The Nonprofit Quarterly | Unraveling Development: Nothing Can or Should Substitute for Philanthropy, Part 1: "I'm worried by what I see as an excessive focus on generating revenue by nonprofits.

There's a new old chant in town: 'Let's start a business where customers buy stuff and then we won't have to rely so heavily on donations!' Articles proclaim that nonprofits are 'finally wising up.'"