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Can we sell ads in our nonprofit newsletter?

Your Legal Questions Answered

Can we sell ads in our nonprofit newsletter?

Can we sell ads in our nonprofit newsletter?

Yes.  The question is whether the net income will be considered unrelated business taxable income, coming from a trade or business that is regularly carried on and unrelated to the purpose for which you have obtained exemption.  If so, net income of more than $1000 per year will be subject to unrelated business income tax (“UBIT”) (See Ready Reference Page:  “Nonprofits Often Worry About UBIT”)  

Tuesday, June 8, 2010

Comments

If you are using a nonprofit bulk permit, you will want to consult with the post office to determine how much advertising and what types of advertising they allow. If not, the mailing may become ineligible for the special rate.

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