Tax Tips for Higher Education

Many institutions honor long-time board members with “gifts” that could be deemed compensation for tax purposes.

Saltwater Christian College (SCC) is a private university and exempt under I.R.C. section 501(c)(3) and section 170(b)(1)(A)(ii). SCC conducts an annual baseball tournament lasting five days. CC spends three months prior to the tournament selling advertising space in the program/brochure, which is distributed at the tournament. Because the brochure is distributed only over a five-day period, the advertising for the brochure is not an unrelated business activity. It would be considered “not regularly carried on” according to several UBIT rulings.

In an election year, could “political” activities of student organizations cause issues for your school’s 501(c)(3) status?

We’ve heard from some Christian colleges who are contemplating how they might get out of Form 990 filing requirements (and possibly receive other benefits) by formalizing their relationship with or becoming more aligned with a church or denomination/association of churches.

Special events can be a good source of revenue for your organization, and annual events can grow into a strong, long-term source of funds. The key is that it takes planning.