From A Business To be considered a business, the nonprofit must take an active role in the generation of income from an activity. The activity must provide income, but does not have to produce a profit. Activities occurring only once a year may be considered UBI if a commercial company performing the same activity would also be active only once a year. The substantial relation to the PTA's exempt purpose cannot come solely from the need for money. Special Exceptions Volunteer activities.
Judgment is made on an individual basis whether an activity is related or unrelated.
Gross receipts are all receipts recorded in the treasurer's books. It is an information return, open for public inspection. The 990 is a report of activities and spending, and ensures compliance with IRS guidelines for spending of such organizations. The treasurer must be aware of spending that does not meet IRS guidelines and could jeopardize nonprofit status. Samples of Form 990EZ and Schedule A are included.