Unrelated Business Income
CB&H NFP Seminar: Weddings, Banquets and UBI! (Charlotte, 11/16)
During these difficult economic times, tax-exempt museums and cultural organizations are searching for new sources of revenue, including the rental of their facilities for various events. However, organizations may not be aware of the fact that such events could ultimately generate unrelated business income. With nonprofits under increasing scrutiny and the IRS focusing its attention on the commercial activities conducted by tax-exempt entities, it’s time to take a further look at this area. Please join Cherry, Bekaert & Holland on Wednesday, November 16, 2011, for a roundtable discussion on this topic. At the end of this session, attendees should be able. Read More.
Boost Your Nonprofit’s Income With Ideas That Work
Donor contributions continue to decline for many nonprofits, and this means that it may be time to seriously review some supplemental revenue options. There are a number of time-tested ways nonprofits can generate revenue and keep your nonprofit economically viable. However, many alternative revenue streams often involve unrelated business income, so be sure to discuss any potential new income strategies with your accountant. What’s Your Mission? A tried-and-true way to generate income is to offer services and programs for a nominal fee. For example, you might host speakers, classes or exhibits that are related to your organization’s tax-exempt purpose. You. Read More.
IRS Conducting Long-Term Charitable Spending Study
Earlier this month, Lois Lerner, Director of the IRS Exempt Organizations (EO) office , announced to state regulators and practitioners that the IRS is conducting a long-term study of charitable spending. The study will examine not-for-profit organizations that have high fundraising costs, high executive compensation, and a disproportionate amount of unrelated business income. In some cases, the IRS will initiate an examination of an organization. Lerner also spoke about EO priorities related to the new Health Care Reform law . She said that the IRS is examining hospital issues related to Form 990 , Schedule H, as well as those aspects of the law that will apply to not-for-profit organizations as. Read More.
Audits Nationwide Expand IRS Scrutiny of Colleges and Universities
As reported last week by The Statesman , the IRS recently launched audit efforts at several colleges and universities throughout the country, focusing on executive compensation practices and income unrelated to the university’s educational mission. According to Patti Ohlendorf, vice president for legal affairs at the University of Texas: “IRS agents will be on site periodically, and they are asking us for information regarding various campus activities, and they will review those activities with respect to income and expenses. The exact details I really can’t give you since it just started. It will take some number of months.” Reports indicate that the IRS is auditing. Read More.