What is UBIT (Unrelated Business Income Tax)?

Person'd hand holding tablet with financial charts including unrelated business income tax

A 501(c)(3) nonprofit is not taxed on revenue that comes from an activity that is substantially related to the organization’s tax-exempt purpose (charitable, educational, religious, scientific, or other). But, some activities that the nonprofit undertakes may subject it to tax. If a nonprofit conducts an unrelated trade or business to generate income, the nonprofit may […]