Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Nonprofit organizations are generally recognized as exempt from federal income taxes, with the exception of tax on unrelated business income. This course is designed to assist those working for nonprofit organizations as well as CPAs and others who consult with nonprofits to identify unrelated business activities and gain confidence in calculating unrelated business taxable income. We will cover the three primary principles of unrelated business income as well as exceptions to those principles. We will also discuss common examples of unrelated business income, siloing rules, and Form 990-T reporting.
Publication Date: July 2022
Designed For
CPAs, CFOs, Controllers, Directors of Finance, Finance and Accounting Staff, bookkeepers, and others working with exempt organizations.
Topics Covered
- Overview of unrelated business income
- Criteria for Unrelated Business Income
- Separate Trade or Business Activities
- Rental Activities
- Advertising and Sponsorships
- Other Common Sources of UBI
- Form 990-T Reporting
Learning Objectives
- Recognize and apply the three principles of unrelated business income and apply those principles to activities commonly treated as unrelated
- Identify where exceptions or special rules exist to exclude an activity from unrelated business income
- Describe the siloing rules and the impact of those rules on Form 990-T reporting
- Recognize which rule laboratory testing for private physician clinics for non-hospitals and hospital pharmacy sales to non-patients are examples relates to
- Identify beginning on or after which date general rules were effective for tax years
- Describe the 2-digit code used to identify separate trade or business activities
- Identify the correct ratio for the amount subject to unrelated business income tax for debt-financed real property rentals
- Identify income related revenue from publication, such as subscriptions or sales (i.e., non-advertising revenue)
- Recognize which type of entities does not look through to activity of underlying business to determine the nature of revenue allocated to an exempt organization
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of unrelated business income and Form 990-T Reporting Requirements.
Advance Preparation
None
Instructors
Megan Ryan
Megan Ryan, CPA, is a tax principal at Clark Nuber P.S. with a focus on tax compliance and consulting for public charities, including hospitals and healthcare systems, research institutes, arts organizations, and social service organizations. She also works with social welfare organizations and membership organizations. In addition to federal tax compliance needs, Megan consults with her clients on tax law changes, IRS audits, the excise tax on remuneration, and hospital community benefits and ACA compliance. In addition, she consults on unrelated business income matters, joint ventures, alternative investments, and foreign filing requirements.
Megan is also a co-author and managing editor of the Form 990 Compliance Guide by Clark Nuber and teaches at Clark Nuber’s not-for-profit basics seminar. She has been with Clark Nuber for 17 years.
Danielle Wright
Danielle Wright is a Tax Senior Manager at Clark Nuber P.S. based in Bellevue, Washington. She has a passion for supporting the community and finds joy working with exempt organizations. She works with a variety of exempt organizations including foundations, social service agencies, and private schools. She also works with many for-profit businesses and individuals, doing annual tax return compliance and tax planning.
She holds a Bachelor’s Degree in Accounting from University of Washington. She is a member of the AICPA and the Washington Society of CPAs.
Clark Nuber
Located in the Seattle metro area, Clark Nuber PS is home to one of the largest single-office Not-for-Profit practices in the United States. This nationally recognized group is composed of over 80 professionals who specialize in serving more than 750 not-for-profits. These professionals take a broad, holistic view of the entire financial and regulatory ecosystem in which not-for-profits function.
Our involvement and investment in the industry extends beyond providing professional services to charitable organizations. Our shareholders and principals also present regularly at conferences and seminars tailored to the not-for-profit community. And, several leaders serve on national-level boards and committees that establish guidance and best-practices for the sector, including the Financial Accounting Standards Board (FASB) Not-for-Profit Advisory Committee, the TE/GE EO Council’s TIC-TAQ Forum, and the AICPA Exempt Organization Technical Resource Panel.
Additionally, Clark Nuber is the author of the Form 990 Compliance Guide and the Private Foundation Handbook and Compliance Guide.