• Even though an organization is recognized as tax-exempt , it still may be liable for tax on its unrelated business income
For income to be considered unrelated business income , it will come from ( 1 ) a trade or business that is ( 2 ) regularly carried on and ( 3 ) is an activity that ’ s NOT substantially related to accomplishing the organization ’ s exempt purpose .
• An exempt organization that has $ 1,000 or more of gross income from an unrelated business must file Form 990-T