Based on the information provided, this is an income/expense (I/E) activity that requires an MOU and may be subject to unrelated business income tax. Contact FAB to begin the process of creating an I/E activity.

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Unrelated Business Income Tax (UBIT) is the federal income tax imposed on the Unrelated Business Income generated by tax-exempt organizations. Unrelated Business Income consists of income the University generates from activities that are not related to its tax-exempt activities. Income is considered to be “unrelated” if all of the conditions listed below are met:

  • The activity is conducted as a trade or business;
  • The activity is regularly carried out, and;
  • The activity is not substantially related to the exempt mission of the university.

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