Unrelated Business Income Tax (UBIT)

As a 501(c) (3) organization, the University of Georgia Foundation is subject to unrelated business income tax (UBIT). As a general rule, the Foundation does not engage in activities which would be considered as unrelated business income because such activities are not considered part of our tax-exempt purpose by the Internal Revenue Service, and they can result in an additional cost of paying unrelated business income tax (UBIT). Even if an unrelated business activity yields no profit, it must be reported to the Internal Revenue Service. It is the Foundation’s policy that we must consult with legal counsel and our tax preparation professionals before any transaction which has elements of unrelated business income is considered. The Foundation will not accept any income deposits that could have been generated from an unrelated business activity that has not been approved by the Senior Director of Financial Reporting for the Foundation.

Please contact the Senior Director of Financial Reporting before considering any revenue generating activities involving the use of Foundation funds or the deposit to a Foundation fund. Any contracts involving these revenue-generating activities must be reviewed by the Foundation and be approved and executed by the Chief Financial Officer of the Foundation.