Revenue generated by an exempt organization from the distribution of low-cost items is not income from an unrelated trade or business.

Question

Quizplus · Accepted Answer

Revenue generated by an exempt organization from the distribution of low-cost items is considered an activity related to the organization's exempt purpose, and thus, it is not classified as income from an unrelated trade or business. This is because such activities are not regularly carried on and are substantially related to the organization's mission.

Revenue Generated by an Exempt Organization from the Distribution of Low-Cost