Unrelated Business Income

Does your nonprofit organization do any of the following?

1. Pay for MARTA passes or nearby parking for employees,

2. Purchase MARTA passes or parking at a nearby lot and then passes those costs on to employees through a pre-tax deduction to the employee’s pay, or

3. Have parking lot spaces included in its lease and provides the parking free to its employees.

Then your nonprofit may owe taxes to the IRS under the new Tax Cuts and Jobs Act. Read this important article for more information.

Thrift shops are a popular way for nonprofit organizations to earn extra income. Whether your nonprofit is about to open the doors to your new thrift shop or you have been running one for years, this article raises some of the legal issues to consider.

Are you considering conducting commercial type activities – maybe a thrift store or a coffee shop, or selling goods or services of some kind? The IRS has developed short podcasts on various subjects to educate its employees and has made these podcasts available to the public. This podcast explains how the IRS evaluates commercial type activities when deciding whether to approve tax exemption or revoke tax exemption. It’s short (15 minutes long) and helpful.

https://www.stayexempt.irs.gov/Resource-Library/Issue-Podcasts

Have you ever shopped at a store or eaten at a restaurant that was operated by a nonprofit? Many organizations that have 501(c)(3) tax-exempt status conduct such commercial business activities in order to provide training opportunities for clients and make money for their ongoing programming. Such organizations do not have to any pay Federal income taxes, right? Not necessarily. This article helps explain whether income generated through training programs is taxable as unrelated business income.

Need guidance on unrelated business income, especially what constitutes it? Read here!

Does your organization generate income from activities, including fundraising, that are not directly related to the basis of the organization’s exemption? The IRS has special rules for tax on that income that you need to know.

Nonprofits are exploring new ways to bring income to their organizations. Some of these income ideas may generate unrelated business income which may be taxable.

During this one hour webcast, our speakers:

• Define unrelated business income.
• Identify the risks of generating unrelated business income.
• Discuss the exceptions and exemptions to unrelated business income.

Presenters:
Robyn Miller, Staff Attorney, Pro Bono Partnership of Atlanta
Timothy Phillips, Attorney, American Cancer Society

Click here to view the webcast.

Many nonprofits are considering social enterprise (a.k.a. social entrepreneurship or social ventures) as a way to expand their reach. With social enterprise, nonprofits use business models and entrepreneurial approaches to improve the common good and solve social problems in new and effective ways. For example, the Georgia Justice Project started a landscaping program in order to provide employment to its clients.

While some nonprofits see social enterprise as a way to reduce their dependence on charitable donations and grants, others view the business itself as the vehicle for social change. Either way, there are many complex legal and tax issues associated with such ventures.

During this one hour webinar, our speakers help nonprofits understand:

• The legalities and realities of social enterprise
• The tax ramifications of social enterprise
• The pros and cons of social enterprise

Presenters:
Anne Andrews, Berman Fink Van Horn
Tim Phillips, American Cancer Society

Click here to view the webcast.