Earned income can play a vital role in sustaining a non-profit’s work, especially when donations alone are not enough. At the same time, organizations must carefully navigate complex IRS rules to avoid paying income tax on activities that may be considered an unrelated trade or business. When those activities become substantial, they can even threaten a non-profit’s tax-exempt status. We have extensive experience guiding non-profits as they develop, expand, and maintain earned income initiatives in ways that minimize tax exposure while safeguarding their exempt status.
We support and guide non-profits to ensure compliance in a wide range of revenue-generating areas, including:
- Exploiting intellectual property rights.
- Generating royalty, rental, and program income.
- Establishing for-profit subsidiaries.
- Soliciting donations through auctions, raffles, sweepstakes, and gaming events such as “casino nights.”
- Participating in public private partnerships or joint ventures.
Contact us to learn more about how we can help your non-profit thrive.