Unrelated Business Income

Income a nonprofit organization produces on a regular basis from a trade or business that is not connected to its ordinary operations. For example, a charity may sell t-shirts at a profit to the general public. While there are a number of exemptions, the IRS taxes unrelated business income at ordinary corporate tax rates.

Mentioned in

Form 990-T
Form 990-W
Inst 990-T
Publ 3079
Publ 3637
Publication 1828
Publication 598

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