Is there a limit on the amount of unrelated business income an organization can have without affecting tax-exempt status?

IRS Publication 557 – Tax-Exempt Status for Your Organization, establishes an 85% of the gross income requirement. This requirement is that the exempt organization must “. . receive 85% or more of their gross income from their members for the sole purpose of meeting losses and expenses.” This 85% rule applies to ALL exempt organizations, not just 501(c)(4) social welfare organizations.