If an exempt organization conducts a trade or business that is regularly carried on by the organization, where the business relates to the organization's exempt purpose, the organization is subject to the unrelated business income tax (UBIT).

Question

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If the trade or business is related to the organization's exempt purpose, it is not subject to the unrelated business income tax (UBIT). UBIT applies to income from activities not substantially related to the exempt purpose.

If an Exempt Organization Conducts a Trade or Business That