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 Unrelated Business Income Tax Ubit Finance & Accounting 2022

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let's talk today about unrelated business income tax this is something that is only applicable to 501 non profit organizations so that's gonna be 501 C whatever C 3 C 4 C 6 and it applies differently depending on those the focus of this video is unrelated business income tax as it relates to 501 C 3 tax-exempt organizations now the important thing to cover with this is the unrelated business income tax is its it's kind of a giveaway in the name it deals with when an organization has unrelated business income and the taxes that that organization has to pay on that income now the important sort of framework here to think about is that nonprofit organizations are set out for a charitable purpose right there's a mission that that organization has set out to accomplish maybe let's say that's housing homeless people and getting them into shelters and that's awesome and that charitable purpose the programming of that needs funding right

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