Non-profit organization charge for advertising
Can a non-profit organization charge a company to advertise their services on the organization's website? Do we need a contract, and tax ID number to do so?
Asked on 5/23/04, 9:20 pm
1 Answer from Attorneys
Randall A. Lenz
Randall A. Lenz, Atty, CPA
Re: Non-profit organization charge for advertising
Yes, a non-profit can charge for advertising. However, the resulting income may be unrelated business taxable income (UBTI), subject to federal and state income taxes. You don't need a contract - but I would advise you to have one. How have you opened a company bank account without a federal tax identification number? You will need one especially if the advertising income requires that you file a tax return.
Answered on 5/23/04, 10:37 pm
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