There are few topics that generate more confusion to nonprofit managers than UNRELATED BUSINESS INCOME, or UBI. It is also one of the areas that can cause the most problems for your organization. It can cost you money in the form of TAXES, and it could potentially cost you your tax-exempt status if not properly handled. Let’s take a look at what constitutes unrelated business income, and how best to handle it if your nonprofit chooses to go down this route.

📚 ADDITIONAL RESOURCES:
•VIDEO: If Your Nonprofit Owns Property, Reduce Risk With This Strategy    • If Your Nonprofit Owns Property, Redu...  
•VIDEO: What Is A 501(c)(7) Nonprofit Organization?    • What Is A 501(c)(7) Nonprofit Organiz...  
•VIDEO: Nonprofits: Don't Accept Donations of Pro Bono Services Or Rent (Unless You Understand This)    • Nonprofits: DON'T Accept Donations of...  
•ARTICLE: Nonprofit Unrelated Business Income Explained https://bit.ly/3e0M34O
•ARTICLE: How a Subsidiary 501(c)(2) Could Lower Risk for Your Nonprofit https://bit.ly/3y3B8yp

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0:00 Introduction
0:56 Definition of UBI
1:41 “Income from Trade or Business”
2:03 “Regularly Carried On”
2:57 “Not Related to Charitable Purpose”
3:46 Example 1
4:50 Example 2
5:44 Exceptions
7:35 UBI is Taxable Income
8:13 UBI Should Be Limited
8:53 Alternatives
9:06 Conclusion