Leadership and The Workplace

Nonprofit Spark

Renee McGivern

Nonprofit Spark – Nonprofits and the IRS: Unrelated Business Income Tax (UBIT) and more – 06/27/11

On this show, I speak with Jeffrey Tenenbaum, an expert on nonprofit law, about unrelated business income taxes. If you receive income from corporate sponsorships, advertising, licensing agreements or endorsements, or cause-related marketing, then you and the staff people involved must know when that income is taxable and when it’s not. If you don’t receive this type of income, listen to this show anyway; one of your board members may ask, “How can we generate more revenue? How about getting in on the cause-related marketing craze?”

We cover two other IRS-related topics on the show as well. Tenenbaum describes how 275,000 nonprofits recently lost their tax exempt status (see the list) and also discusses the IRS’ latest plans for conducting nonprofit employment tax compliance audits. Employers must know and honor the difference between independent contractors and employees and also, which employees should be classified as exempt versus non-exempt.

The show moves along very quickly and provides a solid base of knowledge so you spot tax-related red flags in your organization.