While revenue-generating activities (vs. donated income) are increasingly critical, non-profits must comply with complex IRS regulations to avoid income tax on that revenue (so-called unrelated business income) and the loss of tax-exemption that such activity can result in. We are expert in working with non-profits to develop earned income that avoids taxation and otherwise complies with IRS regulations.
We support and guide non-profits in a wide range of revenue-generating areas, including:
- Monetizing their assets and programs;
- Royalty and rental payments;
- Setting up income-generating activity to avoid or minimize unrelated business income tax;
- Creation of for-profit subsidiaries;
- Commercial activities;
- Charity auctions, raffles, sweepstakes, and gaming (e.g., “casino nights”); and
- Creation of hybrid non-profit/for-profit business structures to optimize mission driven “social enterprises.”
Contact us to learn more about how we can help your non-profit thrive.