Académique Documents
Professionnel Documents
Culture Documents
Speaker Biography
Deborah G. Kosnett, CPA, is a Tax Principal with Tate & Tryon, CPAs and Consultants, in Washington, DC, a firm specializing solely in not-for-profit organizations. She has nearly 25 years' experience as a tax advisor to not-for-profit organizations throughout the country. Prior to joining Tate & Tryon in 1999, Ms. Kosnett was a senior tax manager with both KPMG and Ernst & Young in Washington, DC, where she worked with numerous exempt organizations, as well as not-for-profit hospitals and multi-entity health systems. Ms. Kosnett is a frequent contributor to American Society of Association Executives (ASAE) publications; her most recent article is "Need-to-Knows in the New 990," published in the January 2010 Associations Now Volunteer Leadership Issue. She is also a regular presenter at conferences held by AICPA, ASAE, the Greater Washington Society of CPAs, and the Finance and Administration Roundtable, and is a co-author of ASAE's "Guide to the Newest Form 990. Ms. Kosnett currently serves on the AICPA's Exempt Organizations Technical Resource Panel, where she assists with numerous initiatives, including the TRP's Form 990 Task Force.
Seems pretty simple . . . magazine ads, etc. Yes . . . but! There are other interesting creatures out there in the UBIT universe. Come along with me as we do some exploring! I promise to get you home before dark . . .
Lets GO!
American Institute of CPAs
Property Rental
Services
Mediation and arbitration Data processing Pathology and lab work Speakers bureau Language translation Catering Printing and mailing
American Institute of CPAs
Particular Services
Unique to membership associations Benefits purchaser over industry Particular service?
Does the activity provide an industry-wide benefit?
- Require cooperative effort and/or sharing of expense? - Provide intangible, indirect benefit?
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EXCEPTED
Gold standard docs:
Preprinted lease forms & Landlords manual Used in educational and legislative programs the educational benefits from TAA's dissemination of its updated materials improved management practices in Texas.
-Texas Apartment Assn v. U.S., 869 F.2d 884 (5th Cir. 1989)
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Facilities Operations
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Operation of . . .
Cafeterias, cafes, snack bars Shops and stores Stadiums, arenas, and theatres Health clubs, recreational facilities Storage facilities Parking garages Orchards and farms
American Institute of CPAs
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And More . .
(the really WEIRD stuff!)
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Commerciality Factors
Competition with for-profit sector Generation and accumulation of profits Market-rate pricing For-profit business and marketing practices Customer base general public vs. other charities Lack of donative support
American Institute of CPAs
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Property Rental
Keep personal property rentals to a minimum Lease your garage to a commercial enterprise Eschew income- or profit-based rents Leave catering and other services to lessees
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Debt-Financed Income
Unrelated use not more than 15% Elimination of debt (year and a day rule for capital gains) Certain UBI exceptions and exclusions apply:
Property used for research & excluded under 512(b)(7), (8) or (9) The volunteer, convenience, and donation exceptions Property used by a related org for exempt purposes
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Services
Let a 3rd party operate
Especially for potential particular services Try to avoid agency relationship Lease name/logo/mail list and nothing else
Try to meet volunteer, convenience exceptions Services to related EOs may escape UBI Be a librarian; avoid private projects Minimize/eliminate services in affinity contracts Make lessees provide their own services
Catering, music, security
American Institute of CPAs
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Related web costs usually -0- out tax Limit virtual trade shows time and/or ad content
American Institute of CPAs
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Try to utilize volunteer and donation exceptions Qualified trade show permits sales and order-taking
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Facilities Operations
Use convenience, volunteer, and donation exceptions where possible Offer space rental but no additional services Make items sold relate to purpose Let a 3rd party operate
Avoid income or profit-based rents
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Commerciality Avoidance
Charities relying heavily on goods and services revenue:
Periodically revisit pricing policies Adjust advertising budgets Boost charitable fundraising
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