Defining & Understanding Unrelated Business Income

The IRS is looking at nonprofit unrelated business income (UBI).  Here's a short video to help nonprofit organizations understand unrelated business income.  Rob Nowak, a principal with CliftonLarsonAllen working with nonprofits on tax issues, talks about:

  • The IRS definition of UBI
  • Some of the gray areas left to individual interpretation
  • What organizations can do to stay within the boundaries of what is allowed

Nowak’s comments are relevant for leaders of all types of tax-exempt organizations, including associations and membership organizations; foundations; arts and cultural organizations; and social services organizations.

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