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Concession Sales For 501(c)(3) Organization

Business Law discussions

Concession Sales For 501(c)(3) Organization

Postby Jaden » Mon Oct 03, 2016 8:35 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.
Jaden
 
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Joined: Mon Feb 10, 2014 3:10 am

Concession Sales For 501(c)(3) Organization

Postby Telford » Tue Oct 04, 2016 10:41 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.
Telford
 
Posts: 41
Joined: Wed Jan 22, 2014 5:47 pm

Concession Sales For 501(c)(3) Organization

Postby Shonn » Fri Oct 28, 2016 7:05 pm

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]
Shonn
 
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