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Concession Sales For 501(c)(3) Organization

PostPosted: Tue Jul 28, 2015 5:56 pm
by Kuruk
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.

Concession Sales For 501(c)(3) Organization

PostPosted: Wed Jul 29, 2015 9:13 pm
by Aodh

IRS Publication 598 "Tax on Unrelated Business Income of Exempt


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.

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]