It is becoming more common for nonprofits to generate income through activities that fall outside of their exempt purpose—and these initiatives may have unexpected tax consequences. If your organization has nontraditional revenue streams, you could benefit from an unrelated business income study. Nonprofit tax professionals can help your organization by:
- Analyzing activities subject to unrelated business income tax
- Evaluating various planning alternatives to support treating the activity as nontaxable, including restructuring
- Developing cost allocation methods for taxable activities that can help minimize your tax liability
Our nonprofit and tax professionals are highly experienced and committed to the nonprofit industry. We understand the tax complexities associated with unrelated business income and how to approach this issue. We will work closely with your organization to help you understand your revenue sources, develop an unrelated business income strategy and reduce your tax burden.
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