Unrelated Business Income Tax (UBIT):

Revenue generating activities not directly related to USF's exempt purposes of teaching, research or public service may be subject to federal unrelated business income tax (UBIT).  Congress imposed UBIT on exempt organizations to eliminate a source of unfair competition by placing tax exempt organizations on the same basis as nonexempt organizations with which they compete.  Thus, when USF earns revenue from a trade or business, regularly carried on, that is not related to USF’s mission it may result in UBIT.  Examples of activities that may result in UBIT are listed below: 

1.       Overview

2.       Expenses Allocable to Unrelated Business Income

3.       Research Activities

4.       Advertising Income

5.       Sponsorship Revenue

6.       Suggested Sponsorship Language

7.       Exclusive Arrangements – Granting a corporation the exclusive right to distribute food, beverages or provide athletic apparel for example.

8.       Exploitation of Exempt Activity

9.       Royalties/ Licensing Agreements/ Passive Income

10.   Rental Income

11.   Lease of Space on Broadcasting Towers

12.   Athletic/ Recreational Facilities

13.   Bookstore Operations

14.   Entertainment Events

15.   Parking & Catering Services

16.   Travel Tours

17.   Training Seminars

18.   Convenience Exclusion

19.   Volunteer Labor and Sale of Donated Merchandise