AboutHarvey Mechanic Expertise Federal tax issues of nonprofit 501(c)(3) public charities only. Establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer question about Nonprofit's Unrelated Business or how to fill out forms. This forum is only for legal questions about a specific nonprofit asked by members or those otherwise directly effected by the specific nonprofit organization.
Experience I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.
Expert: Harvey Mechanic Date: 7/22/2008 Subject: Web Links to Sponsors
Question Is there something that would prohibit a non-profit from not only postings logos of sponsors online, but also posting their web links/URLs?
Example: local sports club with Nike as the sponsor
Answer See www.irs.gov/pub/irs-pdf/p598.pdf
IRS Publication 598 "Tax on Unrelated Business Income of Exempt
Organizations" and there you will see that such activities are
generally taxable.
starting on page 10 in the right column under the heading,
"Exploitation of Exempt Activity - Advertising Sales"
Nonprofit organizations that are granted Federal tax
exemption based on their mission-related purposes
are allowed by the IRS, within certain limits, to generate income
from unrelated business activities.
www.irs.gov/pub/irs-soi/97eounrl.pdf
The organization could, if it has more unrelated activities than
the IRS's vague "certain limit", be jeopardizing its exemption
depending upon the facts and circumstances.
Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com
