IRS actions against nonprofit organizations are on the rise, and one of the areas getting plenty of attention is unrelated business income (UBI). In this eight-minute video Rob Nowak, a principal with CliftonLarsonAllen working with nonprofits on tax issues, talks about:
- The IRS definition of UBI
- Some of the gray areas left to individual interpretation
- What organizations can do to stay within the boundaries of what is allowed
Nowak’s comments are relevant for leaders of all types of tax-exempt organizations, including associations and membership organizations; foundations; arts and cultural organizations; and social services organizations.