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Dynamics CRM: Helping You Be The Hero To The Communities You Serve
Learn how CRM can help improve efficiencies with the grant process, event management, volunteer coordination and donor relations.
September 30, 2010
Industries
Management Team
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The
ongoing challenges posed by the current economic and funding environment has
led a number of organizations to become more strategic in how they will strive
to build capacity. This movement includes some real soul-searching over the
extent to which the organizations programs are both mission-critical and
sustainable. It also means organizations are becoming more entrepreneurial and being
more creative in how they generate revenues. Do an internet search on social enterprise and youll find a
multitude of ideas. While the notion of becoming more entrepreneurial generates
a new excitement among boards and management teams, there are implications and
other considerations that come along with such new endeavors. Aside from the
due diligence and business planning involved, this strategy invites a
discussion over the risk that the activity may not be consistent with the
organizations IRS tax-exempt purpose, giving rise to the requirement to pay
unrelated business income taxes (basically, having to pay corporate income
taxes, from which the organization generally enjoys immunity, unlike its
for-profit counterparts).
For most organizations an
activity is an unrelated business activity, and subject to unrelated business
income taxes, if it meets all three requirements below:
1. It
is a trade or business;
2. It
is regularly carried on, and
3. It
is not substantially related to
furthering the exempt purpose of the organization.
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