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Concession Sales For 501(c)(3) Organization

Business Law discussions

Concession Sales For 501(c)(3) Organization

Postby Alger » Sun Mar 27, 2016 10:02 am

We are an athletic booster club who has filed 1023 and received favorable determination.  Our fundraising includes operation of the concession stands at athletic events(normally weekly).  Is this opeation of concession stands considered "Unrelated Business Income"?

Thanks very much for your help.
Alger
 
Posts: 31
Joined: Sun Feb 16, 2014 4:30 am

Concession Sales For 501(c)(3) Organization

Postby Wincel » Tue Mar 29, 2016 2:19 am

See www.irs.gov/pub/irs-pdf/p598.pdf

IRS Publication 598 "Tax on Unrelated Business Income of Exempt

Organizations"

and there you will see that such activities are generally taxable. However, n page 6 you will see an exceptions such as for volunteer workforce, and, if yours is a 501(c)(3) booster organization that is operating normally, you would be using volunteer workforce. http://snipurl.com/boosterinf

is my summary of IRS regulations relating to 501(c)(3) booster organizations. You may be interested to read that.

However, it is not clear to me whose concession stand it is.  If it is not yours, or a business of another 501(c)(3) organization, then your work is not business but contract labor and that is taxable.

Harvey Mechanic

Attorney at Law

[email protected]
Wincel
 
Posts: 46
Joined: Wed Feb 12, 2014 7:24 pm

Concession Sales For 501(c)(3) Organization

Postby Hokee » Tue Mar 29, 2016 12:25 pm

We are an athletic booster club who has filed 1023 and received favorable determination.  Our fundraising includes operation of the concession stands at athletic events(normally weekly).  Is this opeation of concession stands considered "Unrelated Business Income"?

Thanks very much for your help.
Hokee
 
Posts: 49
Joined: Wed Feb 19, 2014 12:22 pm


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