The theme of the week on the Rubric legal blog is unrelated business taxable income (see yesterday’s post) and the ways that it can impact a nonprofit organization. The IRS is in on the game and has posted a few relevant issue snapshots:
- Some interesting reading on the breadth and limits of the volunteer exception to the unrelated business income tax
- The unrelated business income tax and income from renting out your member/donor/supporter lists
- Exclusive sponsorship/provider arrangements and the potential for unrelated business taxable income
The above are all just further illustrations of how complex and nuanced the unrelated business income tax can be. Analysis of the issues around the unrelated business income tax — including whether an exception applies — is very fact specific and nonprofits are encouraged to regularly review the facts with a qualified professional. Just because you were able to avoid tax when you started conducting the activity 5 years ago doesn’t mean you still can – things change!