Unrelated Business Income

The University is exempt under IRS code section 501(c)(3) from federal and state income tax. However, certain activities may result in unrelated business income (UBI) which is subject to federal and state income tax.

UBI Test

1. Is the activity a trade or business?
2. Is the activity regularly carried on?
3. Is the activity NOT substantially related to the organization’s exempt purpose?

For more information, visit the IRS UBI Class.