Exempt organizations are increasingly diversifying their revenue sources in order to combat reduced charitable giving due to economic downturns. However, they must consider modifications and exclusions that determine whether revenue is treated as unrelated business taxable income (“UBTI”). Through proper planning, exempt organizations may be able to anticipate and mitigate the impact of UBTI on their bottom line and exempt status. In this session, we will review the basic concepts, discuss common opportunities to structure transactions to have more favorable tax treatment, and explore the changes to UBTI reporting brought about by recent tax reform.
Learning Objectives:
- Describe basic unrelated business income concepts
- List opportunities to structure transactions to minimize UBTI
- Analyze tax reform impact on UBTI
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