If the Unrelated Business Income of an Exempt Organization Is

question 147

True/False

If the unrelated business income of an exempt organization is $20,000 or less, the unrelated business income tax (UBIT) will be $0.

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Definitions:

Petty Cash

A small amount of cash on hand that is used for paying minor or incidental expenses in a business.

Free Goods

Items or services available in abundance without direct cost, such as air or sunlight, not requiring scarce resources for their production.

Scarce Resources

Refers to the limited availability of inputs—such as labor, capital, and raw materials—used in the production of goods and services.

Economist

A professional who studies the production, distribution, and consumption of goods and services, often analyzing economic issues and trends.