Can Nonprofits be landlords?
Rental income by itself should not jeopardize your organization’s federal 501(c)(3) charity status.
A charity may have rental income and in some cases the income is not even subject to unrelated business income tax (“UBIT”)
Nonprofit organizations are usually subject to unrelated business income tax (UBIT) on income from a trade or business which is regularly carried on and which is "unrelated" to its exempt purpose, it is critical to determine whether an activity is "related" to the organization’s exempt purpose.
New York State Property Tax Exemption
Nonprofit organizations in New York State are eligible to receive exemption from New York State real estate taxes for property the organization owns and uses for exempt purposes.
California Welfare Exemption for Property Tax
Real and personal property owned and operated by certain nonprofit organizations can be exempted from local property taxation through a program jointly administered by the Board of Equalization and county assessors' offices in California. This exemption, known as the Welfare Exemption, is available to qualifying organizations that have income- tax- exempt status under Internal Revenue Code section 501(c)(3) or 23701(d) of the Revenue and Taxation Code and are organized and operated exclusively for religious, charitable, scientific or hospital purposes.
Link to California Property Tax Welfare Exemption 2012: http://www.boe.ca.gov/proptaxes/pdf/pub149.pdf
Here is My Monthly Nonprofit Podcast by Subscription ($9.95/month) with the exception of My Interviews with Nonprofit Organizations which are Free
To View Podcast Before Subscribing Press the Link Below!
Press Link to Subscribe Now!
60 second and 60 minute Education & Compliance Tidbits and Trainings to review at your leisure .... Updated Monthly