UBIT – Issues for Shared Spaces

  I will be speaking this week for The Nonprofit Centers Network on unrelated business income tax (“UBIT”) related issues faced by nonprofits providing shared space with other individuals or entities (you can register for the webinar here).  As we’ve discussed in previous posts on UBIT, generally, net income from unrelated business activities will be […]

UBIT: Advertisements vs. Qualified Sponsorship Payments

Generally, net income from unrelated business activities will be subject to the unrelated business income tax (”UBIT”) if the activity constitutes (1) a trade or business, (2) that is regularly carried on, and (3) is not substantially related to the furtherance of the organization’s exempt purpose.  The IRS considers soliciting, selling, and publishing commercial advertising […]

The Finance Committee: What is it and What Does it Do?

  A board of a nonprofit is generally empowered to create committees at its discretion, subject to the organization’s bylaws and the laws of the state of its incorporation.  For each committee it creates, the board should determine the level of authority to be given to the committee and how it will maintain appropriate oversight […]

FTB Revocation Policy for Failure to File Statement of Information or Form RRF-1

At a meeting of the California Bar Association’s Tax Exempt Organizations Committee last Friday, the issue of the California Franchise Tax Board (“FTB”) revoking an organization’s state tax-exempt status for failure to timely file a Statement of Information with the California Secretary of State was raised.  Several representatives of the FTB present at the meeting […]

Private Benefit Doctrine – A Few Examples

  The private benefit doctrine is the broadest of the private benefit rules that apply to 501(c)(3) organizations.  It generally provides that a 501(c)(3) organization may not confer any benefit, monetary or otherwise, on any individual or entity that is not incidental, quantitatively and qualitatively, to furthering the organization’s exempt purposes.  The concern behind the doctrine […]