Unrelated Business Income

Before entering into revenue generating agreements please review Financial Affairs Policy FA 157.

As a 501(c)(3) organization, Georgetown University is generally exempt from income tax.  However, under certain circumstances income it receives may generate an income tax liability.

Generally, if the income received meets all three of the following criteria, it constitutes Unrelated Business Income (UBI);

  • It is income from trade or business
  • Such trade or business is regularly carried on by the organization
  • The conduct of such trade or business is not substantially related (other than through the production of funds) to the organization’s performance of its exempt functions

Items to note: