One of the Requirements for an Exempt Organization Being Classified

question 51

Essay

One of the requirements for an exempt organization being classified as an unrelated trade or business is the "not substantially related" requirement.That is, the trade or business is not substantially related to the exempt purpose of the organization.How can an exempt organization avoid satisfying this requirement?

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Definitions:

Depth Perception

The ability to see objects in three dimensions although the images that strike the retina are two-dimensional; allows us to judge distance.

Continuity

The unbroken and consistent existence or operation of something over a period of time.

Closure

The psychological feeling or process of resolving a traumatic or unsettling event, issue, or relationship.

Proximity

The physical or psychological closeness between people or objects, influencing their interaction and perceptions of one another.