Unrelated Business Income Tax (UBIT)
ÃÛèÖÊÓƵ is exempt from paying Federal income tax on income related to the University’s exempt purpose. However, the University also engages in other activities that do not directly relate to the exempt purpose. These other activities are subject to income tax under . This section of the IRC is designed to prevent tax exempt organizations from having an unfair advantage over for-profit business that do pay tax on income generated in the same manner.
Income of a certain type, or from a certain activity, qualify as exemptions from UBIT.