We recently discussed Unrelated Business Income (UBI) that a nonprofit may find itself earning. Although a nonprofit is exempt from federal and state taxes, that doesn’t mean it is entirely free from paying taxes. In the case of Unrelated Business Income, a nonprofit will generally have to pay … [Read more...] about In Chicago, IL, How Is “Unrelated Business Income” Taxed?
A nonprofit organization is just that—one that doesn’t produce a profit by general business standards. Any earned “profits” go back into the organization's coffers to pay for general business needs and to continue the work they intend to do for the betterment of the community. But if a nonprofit … [Read more...] about How Is Unrelated Business Income Determined In Chicago, IL?
When it comes to being a nonprofit organization in Illinois, understanding unrelated business income tax (UBIT) is essential for continual legal compliance as well as nonprofit success and outreach. In short, an unrelated business income tax (UBIT) is a corporate rate tax imposed on the unrelated … [Read more...] about Unrelated Business Income Tax Attorney — Definitions and Examples of UBIT
Unrelated Business Income Taxes (UBIT) are for the taxes assessed on profits derived from non-exempt activities. In most cases, UBIT refers to income and profits that a nonprofit generates from its activities. The most common example is the museum gift shop, which works like a for-profit business in … [Read more...] about What is UBIT and How Can You Avoid These Taxes?