Even if an organization is recognized as tax-exempt under §501(c)(3), it isn’t automatically exempt from all taxes. When a nonprofit earns revenue from activities that are not substantially related to its exempt purpose, that income may be subject to Unrelated Business Income Tax (UBIT). Because the rules are nuanced—and the consequences of getting it wrong can be significant—understanding how to identify, report, and document unrelated business income (UBI) is essential for nonprofit compliance.

In this practical, guidance-driven webinar, Lori Borek will walk you through how the IRS determines whether income is UBI, including the key tests and common scenarios where nonprofits can unintentionally trigger UBIT. You’ll also learn how the “silo” rules work—requiring separate reporting for each unrelated trade or business—and how to apply them correctly.

The session concludes with a step-by-step walkthrough of Form 990-T, including Schedule A, so you can confidently calculate UBIT and complete the return with fewer errors and less guesswork.

Topics Covered:

• When and why §501(c)(3) organizations may owe UBIT
• The criteria used to determine whether income is UBI
• Common exceptions and exclusions—and how to apply them correctly
• What expenses can be used to offset UBI
• Understanding the “silo” rules and separate reporting by activity
• How to prepare Form 990-T, including Schedule A (separate trades or businesses)

Benefits of Attending:

• Identify income that qualifies as UBI for a §501(c)(3) organization
• Apply exceptions/exclusions to report UBI accurately and defensibly
• Recognize allowable deductions to offset UBI
• Prepare Form 990-T and Schedule A with confidence
• Reduce risk of penalties, compliance issues, and unintended tax exposure

Why this webinar is a must-attend:

You’ll leave with a clearer, more practical understanding of how to identify and report UBI—so you can minimize potential tax liability, strengthen compliance, and avoid costly mistakes.