
When a homeschool group has a fund raiser like a used curriculum sale or mini-exhibit hall is the income taxable?Thanks,Dorothy
Fortunately, the IRS has several exceptions to paying the UBIT tax:
- A $1,000 threshold allows that the first $1,000 in gross revenues from an unrelated business will not be taxed.
- If the fundraiser (or unrelated business) is run by volunteer efforts (i.e., no paid staff) then the proceeds are not taxed.
- If the fundraiser is not regularly carried on, such as a once-a-year unsed curriculum sale, then the proceeds are not subject to UBIT.
- If you are selling donated items, like in a garage sale, the income raised is not taxed.
One of these exceptions are bound to apply to most homeschool organizations.