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UBIT - The Tax Consequences of Revenue Generating Activities for Your Nonprofit

Posted 2020 Reviewed June 9, 2022
Source
Venable LLP
Author
George Constantine and Anne Gerson
About This PDF

Revenue generated by nonprofits is generally tax-exempt, but income generated from activities inconsistent with an organization's tax-exempt purpose may give rise to tax obligations. In a May 2020 webinar, attorneys from Venable's Nonprofit Organizations Practice Group presented an overview on how various revenue-generating activities by nonprofits can trigger unrelated business income tax (UBIT) obligations. During the program, George Constantine and Anne Gerson offered ways to minimize that risk and outlined the typical sources of taxable income for nonprofits, along with common pitfalls and questions.

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