Blog

Unrelated Business Income- Exclusions and Carve-Outs

August 25, 2023 Posted by Casey Summar in Non-profits, Nonprofits, organization, Taxes, Unrelated Business Income
Tags:

Review of Unrelated Business Taxable Income While 501(c)(3) organizations are generally recognized as tax-exempt, they may have to pay tax on income derived from certain revenue-generating activities (as opposed to income from donations) known as unrelated business taxable income (UBTI). Income may be considered UBTI if it (1) is from a trade or business, (2) …

READ MORE »

How Does “Unrelated Business Taxable Income” Relate to Nonprofits?

July 31, 2023 Posted by Casey Summar in Form 990, Non-profits, Nonprofits, Taxes, Unrelated Business Income
Tags:

What is unrelated business taxable income (UBTI)? Although tax-exempt organizations (referred to herein as a “nonprofit”) are generally exempt from federal income tax, they may have to pay income tax on net income derived from business activity that is unrelated to their tax-exempt purpose, called “unrelated business taxable income” (UBTI). This type of tax is …

READ MORE »

Political Campaign Intervention

June 30, 2023 Posted by Casey Summar in Fundraising, Lobbying, Non-profits, Nonprofits
Tags:

What is Political Campaign Intervention? Participating in, or intervening in, any political campaign on behalf of, or in opposition to, a candidate for elective public office is called “political campaign intervention.” 501(c)(3) tax-exempt organizations are strictly prohibited from engaging in any political campaign intervention, direct or indirect, including supporting or endorsing a candidate for public …

READ MORE »

Nonprofits and Lobbying

May 26, 2023 Posted by Casey Summar in Lobbying, Nonprofits

What is Lobbying? “Lobbying” is defined as carrying on propaganda, or otherwise attempting to influence pending or proposed legislation. Attempting to influence legislation includes contacting, or urging members of the public to contact, members or employees of a legislative body to propose, support, or oppose legislation, and advocating for the adoption or rejection of legislation. …

READ MORE »

Should I Start a Private Foundation?

March 31, 2023 Posted by Casey Summar in Non-profits, Nonprofits

What is a Private Foundation? A private foundation is a type of 501(c)(3) tax-exempt organization typically established for the purpose of grantmaking. Private foundations are usually funded by an endowment, a single donor (whether an individual or corporation), or a small group of donors. This is in contrast to public charities which must be supported …

READ MORE »

What is the Difference Between a Public Charity and a Private Foundation?

In the nonprofit sector, the words “charity” and “foundation” often are used interchangeably. However, underlying these terms is a legal concept critical to most 501(c)(3) tax-exempt organizations. Each 501(c)(3) is classified by the IRS as either a “public charity” or a “private foundation.” This classification has significant implications for the organization as it impacts the …

READ MORE »