Defining Unrelated Business Activities
Unrelated business activities generally involve providing services or products to individuals or entities who are not affiliated with the University (i.e., non-UC groups and corporations, and those who are not University students, faculty and administrative personnel).
Unrelated business activities are revenue-producing and taxable activities that are:
- Not directly related to achieving the University's educational and research missions.
- Conducted for the primary purpose of earning a profit.
These activities may be subject to unrelated business income tax (UBIT), which is imposed at the same tax rates applicable to for-profit corporations. For a complete explanation of unrelated business activities see BFB A-61; Unrelated Business Income and Expenses.
Units operating unrelated business activities are required to contact Tax Reporting and Compliance.
Unrelated Business Income
Activities that are determined to produce Unrelated Business Income/Loss (UBI) will be included in the university's consolidated Exempt Organization Business Income Tax Return (Form 990-T), to be prepared each year for submission to the Internal Revenue Service.