What is Unrelated Business Income Tax?
A major benefit to being a nonprofit is the exemption from federal and state income taxes. However, certain activities, considered unrelated to the organization’s core mission, are subject to taxes.
A major benefit to being a nonprofit is the exemption from federal and state income taxes. However, certain activities, considered unrelated to the organization’s core mission, are subject to taxes.
If a board member is in a position of influence within the organization, and he or she may be seen as obtaining personal benefit from a financial relationship that is self-dealing.