Income from an unrelated trade or business used exclusively for carrying on the non profit organization s purpose is still considered unrelated business income. Specific business activities of a non profit organization will be deemed to be regularly carried on if they are pursued in a manner similar to competing nonexempt organizations. Continuity of the activity. Trade or business consists of merchandise sales, and substantially all of the merchandise has been received as gifts or contributions. These programs are generally exempt from federal tax, but tax on unrelated business income still applies.
Item is accompanied by a request for a charitable contribution.
Person receiving item may keep it even if no contribution is made. To continue to Page II click here .