0. Unrelated
Business
Income
Tax
© 2016 Brigham Young University–Idaho

1. What is UBIT?
UBIT is a tax imposed on the unrelated business income generated by tax-exempt organizations.

2. What qualifies as Unrelated Business Income (UBI)?
An activity results in UBI if it meets all 3:
Qualifies as a trade or business
Regularly carried on
Not substantially related to exempt purpose

3. Catering to outside groups Bookstore sales to non-University members
Examples
BYUI’s UBI includes:
Cell Phones
Catering to outside groups
Bookstore sales to non-University members
???

4. Other Universities’ UBI includes:
Examples
Other Universities’ UBI includes:
Sale of computers to other non-profits
Career services offered to alumni for a fee
Rental of stadium to San Diego Chargers
Sale of recreational membership cards to the general public

5. Why should you care?
IRS scrutiny

6. Qualtrics survey (coming soon)
What we’re asking for
Qualtrics survey (coming soon)
List potential activity with short description
Department account (6 digits)
Revenue category code (4 digits)