Legal Question in Tax Law in Georgia

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.

Read more
Answered on 5/23/04, 10:37 pm


Related Questions & Answers

More Tax and Taxation Law questions and answers in Georgia