Article

Tax Considerations for Tax-Exempt Organizations Managing Unrelated Business Income (UBI)

September 8, 2021

Tax liabilities resulting from unrelated business income (“UBI”) by exempt organizations can be significant. Creating a for-profit subsidiary to house these activities in an effort to avoid losing exempt status may be advantageous but also carries risks.

Cherry Bekaert’s Amanda Adams, managing director of Tax Services and Leader of the Firm’s Not-for-Profit Group, discusses this topic for her article published in the Taxation of Exempts publication. Learn about key considerations that exempt organizations should consider to best manage UBI and comply with tax exemption requirements.

For more information about tax issues for exempt organizations, contact your Cherry Bekaert advisor or Amanda Adams.

This article is reprinted with the publisher’s permission from the May/June 2021 issue of Taxation of Exempts, a bimonthly Thomson Reuters journal. Copying or distribution without the publisher’s permission is prohibited. To subscribe to the Taxation of Exempts, call (800) 323-8724.

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