[SJAAboard] Advertising in the Ephemeris

[Michael D. Turner]

Paid advertisements are considered by the IRS to be in the class of
"unrelated business income". This UBI will not impact the tax-exempt status
of the club so long as it doesn't become a major part of the club's income.
There is no filing requirement so long as this income is less than $1000 per
year; if it is greater, then the club would need to file a 990-T and a
California form 100 (corporation tax return) and pay tax at the corporate
rates on net income above the $1000 exemption.

I would recommend keeping this income below the exemption limit if for no
other reason than to avoid the hassle factor and cost of preparing these
returns.

-Mike

->-----Original Message-----

<snip>
->If I recall correctly, years ago it was suggested that the SJAA could
->not publish commercially paid-for advertisements due to the club's tax
->status.  I've wondered about that for a long time, as PAS has Orion ads
->in their monthly newsletter.  Is PAS non-profit?
<snip>
->
->Mark
->