PFS2202. UBI: Why Is It OK and When It Isn't

This session will focus on the unrelated business income (UBI) rules as they apply to private foundations. When can UBI run afoul of the IRC section 4943 prohibition on excess business holdings. What should private foundations consider when entering into direct charitable activities or pass through investments related to UBI.

Learning Objectives:

• Understand the rules of unrelated business income and how UBI is reported on the 990-T whether the activity is direct or indirect through an investment.
• Appreciate how the UBI rules intersect with the excess business holding rules of irks section 4943 and can be a trap for the unwary private foundation.
• Brief update on new reporting requirements related to Schedules K2 & K3