Your not-for-profit may prefer to avoid activities that subject it to unrelated business income tax (UBIT). But if you accept advertising or sponsorships that aren’t substantially related to your tax-exempt purpose, you may unwittingly expose your organization to UBIT liability.

person pointing at a laptop screen with another person; image used for blog post about not-for-profit's sponsorships and advertising being taxable

The rules governing these types of support are complicated, so it’s important to have a basic understanding of what is and what isn’t potentially taxable.


Continue Reading What’s Taxable for Your Not-for-Profit’s Sponsorships and Advertising?

Many not-for-profit organizations supplement their usual income-producing activities with sponsorships or advertising programs. Although you’re allowed to receive such payments, they’re subject to unrelated business income tax (UBIT) unless the activities are substantially related to your organization’s tax-exempt purpose or qualify for another exemption. So it’s important to understand the possible tax implications of income