Structuring a Social Enterprise: Protecting Your Existing Non-Profit Organization
In Structuring a Social Enterprise: Non-Profits and Unrelated Business Income, we discussed the unique problem non-profit organizations can face when they generate Unrelated Business Taxable Income (UBTI). But how your non-profit operates its social enterprise can also have a major impact on the organization’s tax-exempt status.
Structuring a Social Enterprise: Non-Profits and Unrelated Business Income
This week we turn to one of the unique issues impacting non-profit organizations who try to raise money by starting a social enterprise–unrelated business income. As a non-profit (and for this blog post, we’re going to focus on 501(c)(3) organizations), how do you start a social enterprise without jeopardizing your charitable status and without incurring unexpected tax liabilities?