In addition to receiving donations, grants, and government funding, many nonprofits generate their own revenue by providing goods and services for a fee. In fact, around half the money generated by the nonprofit sector has traditionally come from self-generated "earned income" rather than from donations, grants, and government sources. Revenue-generating activities that advance your nonprofit's mission may be pursued on a tax-exempt basis; on the other hand, revenue-generating activities that are unrelated to your mission may be subject to Unrelated Business Income Tax (UBIT) and jeopardize nonprofit status.
Join Jason Z. Qu, Managing Attorney for Nonprofit and Small Business Legal Assistance Programs at D.C. Bar Pro Bono Center, for a practical introduction to the IRS' earned income and UBIT rules.