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Unrelated Business Income Defined

For most organizations, an activity is an unrelated business (and subject to unrelated business income tax) if it meets three requirements:

  1. It is not substantially related to furthering the exempt purpose of the organization.

There are, however, a number of modifications, exclusions, and exceptions to the general definition of unrelated business income.

Additional Information:

Page Last Reviewed or Updated: 23-Jan-2014