Unrelated Business Income

Owned by Smithwick, Jen
Last updated: Apr 04, 2024 by Justin Freeman
1 min read

Although the University generally is exempt from income tax, it is subject to tax on certain activities that may generate unrelated business income (UBI).

An activity generates UBI if:

  1. it is a trade or business,

  2. regularly carried on, and

  3. does not substantially relate to the exempt purpose of the organization.

There are many exceptions and special circumstances that may cause a revenue stream to be deemed UBI or exempted from tax. The tax associated with the UBI activity will be charged back to the applicable department.

If you think your department is engaged in UBI-generating activities, please contact Finance as soon as possible.