Can A Nonprofit Organization Be Taxed?

CAN A NONPROFIT ORGANIZATION BE TAXED ON UNRELATED BUSINESS INCOME? Nonprofit organization often retain an Attorney to provide an opinion on whether the corporation will be engaging in unrelated business activities that may be taxable.   To note, the activities of a nonprofit organization can still be considered charitable even though they generate profits. However, the primary purpose must be charitable and not income generation.  A for-profit business generates income on a regular basis; whereas, a non-profit organization engages in fundraising not on a regular basis. Factors that are considered in determining if the organization is charitable include:  How the income [...]