Which of the following is not accurate with respect to unrelated business income for a 501c3organization?
A) A tax-exempt organization is required to pay tax at the corporate on income generated from any trade or business activities unrelated to the entity's tax-exempt purposes.
B) The purpose of the requirement to tax unrelated business income of a 501c3 organization is to eliminate advantages that have over profit-making organizations
C) As long as the proceeds are used to further the tax exempt organization's purpose, the income will not be taxed.
D) If volunteers perform most of the labor, income-producing activities from will be exempt from unrelated business income tax.

Question

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are required to pay tax at the corporate rate on the income generated from any trade or business activities unrelated to the entity's tax-exempt purposes. The purpose of this requirement is to eliminate advantages that have over profit-making organizations. The existence of one or more of the following conditions will exempt income-producing activities from UBIT: 1) The business is not regularly carried on, 2) volunteers perform most of the labor, 3) the not-for-profit sells donated merchandise, and 4) it is operated for the convenience of employees, patients, students, etc. In addition to certain activities being exempt from UBIT, certain exceptions have been provided in legislation. One of the exceptions is income from royalties, dividends, interest and annuities except from controlled corporations) are not included in come.

Which of the Following Is Not Accurate with Respect to Unrelated