A corporate payment that qualifies as a qualified sponsorship payment is not subject to the unrelated business income tax (UBIT).

Question

Quizplus · Accepted Answer

A qualified sponsorship payment is defined as a payment made by a sponsor to a tax-exempt organization in exchange for advertising or other promotional benefits which do not give the sponsor any preferential treatment. Such payments are not considered as unrelated business income and are not subject to the unrelated business income tax (UBIT).

A Corporate Payment That Qualifies as a Qualified Sponsorship Payment