Don’t let the “commerciality doctrine” trip you up

Description

Abstract: Realizing the danger of becoming overly dependent on donations to sustain operations, some not-for-profits have decided to look for other revenue sources, including opening their own businesses. But even business activities related to an organization’s exempt purpose can fall prey to the commerciality doctrine, resulting in the potential loss of one’s exempt status. This article explains the “commerciality doctrine” and discusses risks from unrelated business income.