Also since this has been brought up before...

...the following activities are specifically excluded from the definition
of unrelated trade or business:

   - *Volunteer Labor*: Any trade or business is excluded in which
   substantially all the work is performed for the organization without
   compensation. Some fundraising activities, such as volunteer operated bake
   sales, may meet this exception. *[Bake SALE at the proposed Auction?]*
   - *Convenience of Members*: Any trade or business is excluded that is
   carried on by an organization described in section 501(c)(3) or by a
   governmental college or university primarily for the convenience of its
   members, students, patients, officers, or employees.  A typical example of
   this is a school cafeteria. *[Selling Arduinos or other consumables in a
   vending area?]*
   - *Selling Donated Merchandise*: Any trade or business is excluded that
   consists of selling merchandise, substantially all of which the
   organization received as gifts or contributions.  Many thrift shop
   operations of exempt organizations would meet this exception. *[All the
   donated Computers?]*


http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Unrelated-Business-Income-Tax-Exceptions-and-Exclusions


On Wed, Mar 5, 2014 at 9:12 AM, Justin Herman <[email protected]> wrote:

> This has already be researched....
>
> http://www.irs.gov/pub/irs-pdf/p1828.pdf
>
> Page 17 Section Rental Income:
>
> "Generally, income derived from the rental of real property and incidental
> personal property is excluded from unrelated business income."
>
> It goes on to state HOW it would not qualify. (if there is a mortgage, if
> personal services are rendered, if a parking lot is charged)
>
> I thought that this might not relate to us as this doc is targeted for
> religious orgs. So I called the IRS before and they stated that this is for
> ALL 501(c)(3) orgs.
>
>
> On Wed, Mar 5, 2014 at 9:03 AM, Devin Wolfe <[email protected]> wrote:
>
>> Can you please provide your source?
>>
>> Thanks,
>> Devin
>>
>> Sent with AquaMail for Android
>> http://www.aqua-mail.com
>>
>>
>>
>> On March 5, 2014 8:55:49 AM Torrie Fischer <[email protected]>
>> wrote:
>>
>>  I'm wearing my treasurer hat for this.
>>>
>>> After some digging around, I've come to the conclusion that leasing out
>>> this space is incredibly likely to be considered a violation of our 501c3
>>> status as it is unrelated income. That $100/mo will need to be taxed and
>>> somehow proven that leasing out our space to non-hacking purposes will
>>> further our mission of providing infrastructure to creative people.
>>>
>>> I'm not cashing any checks that arrive.
>>> _______________________________________________
>>> Discuss mailing list
>>> [email protected]
>>> https://synhak.org/mailman/listinfo/discuss
>>>
>>
>>
>> _______________________________________________
>> Discuss mailing list
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>>
>
>
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