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.

#printfriendly .pf-primary-img { max-width: 150px !important; margin-left: 0 !important;top: -148px; position: relative; } #printfriendly #pf-title { margin-top: 90px;} #w-print,#w-email { display: none !important; } #printfriendly .article-single-content .elementor-widget-container { margin-top: -60px; } #printfriendly .print-cinfo { display: block !important; margin-top: 40px; padding-top: 15px; border-top: 3px solid #f1f1f1; line-height: 1.7; } .content-unmask .pf-delete, .content-unmask .pf-delete * { cursor:pointer; position:relative; color:revert; pointer-events: none; } .content-unmask img.pf-delete, .content-unmask .pf-delete img { opacity:1 } .content-unmask .pf-delete a, .content-unmask a.pf-delete { color:revert !important } .content-unmask .pf-delete:before { display:none; pointer-events: none; } .content-unmask .pf-delete:after { display:none; pointer-events: none; } #pf-body { pointer-events: none; user-select: none; } #pf-src-icon { display: none; }