Social•Apr 10, 2026
Replace UBIT with Commerciality Test to Protect Donations
New journal article from me, Roger Meiners, and Andrew Morriss. UBIT has proved to be a paper tiger in controlling the growth of the large tax-exempt businesses. The solution is to replace UBIT's "relatedness" test with a "commerciality" test which would ring fence donations while taxing the commercial income of nonprofits at the corporate tax rate. Ring-Fencing Bad Tax Policy https://t.co/5qvJFITFqZ
By Scott Hodge