Unrelated Business Income

Before entering into revenue generating agreements please review Revenue Generating Agreements Policy - FA 157.

As a 501(c)(3) organization, Georgetown University is generally exempt from income tax, however, under certain circumstances income the University receives maybe taxable.

Generally, if the income received meets all three of the following criteria, it constitutes UBI;

1. It is income from trade or business
2. Such trade or business is regularly carried on by the organization
3. The conduct of such trade or business is not substantially related (other than through the production of funds) to the organization's performance of its exempt functions

However, there are many exceptions and special circumstances that may cause a revenue stream to be deemed UBI or exempted from tax. Please e-mail Taxdepartment@georgetown.ed with any questions.