Unrelated Business Income Tax (UBI) Criteria

Directive Statement

If the University of Florida carries on a trade or business that is not substantially related to its exempt purpose, the University is subject to tax on its income from the unrelated trade or business; hence, unrelated business income (commonly referred to as UBI).

Remember – the IRS is concerned with how the funds are generated, instead of how the funds are used!

Reason for Directive

To ensure University of Florida compliance with all applicable IRS requirements.

Who must comply?

All UF departments.

Procedures & Best Practices

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