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Unrelated Business Income Tax (UBIT)

Accounting and Financial Reporting

View Official Policy: Unrelated Business Income Tax UBIT Policy

Institutions of the University System of Georgia (USG) are tax-exempt as instrumentalities of the State of Georgia under Section 115 of the Internal Revenue Code. Similarly, institution foundations are exempt under Section 501 (c)(3) of the Internal Revenue Code.

As tax-exempt entities, USG institutions and foundations are exempt from federal income tax for activities that further their educational purpose. However, they are not exempt from income tax imposed on activities that are substantially unrelated to exempt purposes, called “Unrelated Business Income” or UBI, even though these activities may bring in funds to support exempt operations.

The University of Georgia follows the USG Board of Regents policy on Unrelated Business Income. A link to the USG Procedures Manual can be found under Related Information.

The University of Georgia also follows Internal Revenue Service guidelines for tax on unrelated business income of exempt organizations.  A link to the IRS guidelines is also provided under Related Information.

Responsibilities

Responsible University Senior Administrator:  Vice President for Finance & Administration

Responsible University Administrator: Associate Vice President for Finance Division

Policy Owner:  Accounting

Policy Contact:   Elizabeth Prince

Phone Number:  706-542-6874

Date Issued:

Last Reviewed/Updated: