FY25 Unrelated Business Income Tax Questionnaire

Each year the University must perform an analysis to determine the amount of unrelated business income (UBI) to be reported to the Internal Revenue Service (IRS) and Georgia Department of Revenue. The University is not exempt from income tax imposed on activities which are substantially unrelated to the purpose and mission of the University, even though these activities may generate income to support the University’s purpose and mission related activities. Additional details regarding unrelated business income may be found here.


In order to identify activities that may give rise to unrelated business income, Central Accounting has prepared this questionnaire which should be completed by ALL schools/colleges/units on campus. The questionnaire should be completed based on prior year activity. Central Accounting will review each questionnaire and determine if UBI exists and follow‐up with each school/college/unit as necessary. Schools/colleges/units should NOT make a determination on their own as to whether or not they have unrelated activities

CONTACT INFORMATION

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ADVERTISING REVENUE

Advertising is defined as messages containing qualitative or comparative language, price information, an endorsement, and/or an inducement to purchase, sell, or use any company, service, facility, or product.

1) Did the department receive income from advertising during the previous fiscal year?*

Examples would include revenue from ads appearing in printed publications, websites, university buildings/facilities, TV/radio, etc.

1.3) Are students participating in this activity as part of a learning experience?*

SPONSORSHIP REVENUE

Qualified sponsorships do not need to be listed. Qualified sponsorship payments are defined as any payment made by a person engaged in a trade or business with respect to which the person will receive no substantial return benefit other than the "use or acknowledgment" of the business name, logo, or product lines, in connection with the organization's activities. "Use or acknowledgment" doesn't include advertising the sponsor's products or services. NOTE: A payment isn’t a qualified sponsorship payment if its amount is contingent, by contract or other-wise, upon the level of attendance at one or more events, broadcast ratings, or other factors indicating the degree of public exposure to one or more events. However, the fact that a sponsorship payment is contingent upon an event actually taking place or being broadcast doesn’t, by itself, affect whether a payment qualifies.

2) Did the department receive income from sponsorships during the previous fiscal year?*

Examples would include revenue from the sponsoring of printed materials/publications, events, websites, facilities, billboards, scoreboards, TV/radio broadcasting, etc.

2.2) Is UGA required to provide valuable services or significant benefits in exchange for the sponsorship?*

RENTAL REVENUE

3) Did the department generate revenue from a facility or arena rental?*

Examples would include weddings, banquets, corporate events, sporting events, entertainment events, summer housing/ athletic facility rentals, broadcast/ cell tower rental, etc.

3.1) Is any tangible personal property being provided by the university?*

Examples would include furniture, equipment, machinery, linens, table settings, dance floor, AV equipment etc.

For example, the department rented out a facility for $1,000. The detailed invoice shows that $600 was for the room, $200 for furniture, $100 for linens, and $100 for AV equipment. The tangible personal property totals $400 ($200 + $100 + $100), and the percentage to total rent would be $400/ $1000 = 40%

3.2) Does the University provide substantial services to or for the person/organization to whom property is being rented?*

Example would include event planning, set-up, food, janitorial, security, audio-visual, grounds maintenance, etc.

3.2.2) Does the department contract with an outside vendor to supply substantial services?*
3.4) Is this activity carried on with a profit motive?*
3.5) Is this activity regularly carried on?*
3.6) Is this activity related to UGA's exempt purpose (educational)?*
3.7) Is the business conducted primarily for the convenience of its members, students, patients, officers, or employees?*

INTANGIBLE PROPERTY REVENUE

4) Did the department receive revenue from the licensing of intangible property?*

Examples would include copyrights, royalties, patents, broadcast rights, mailing list/ membership list sales, logo usage, exclusive use contracts, trade names, use of intellectual property, insurance commissions, rebates, credit cards, revenue sharing, commissions etc.

4.3) Does the University provide services in connection with the royalty or commission?*

For example is UGA Personnel required to give presentations, lectures, perform services or research, appear at events, etc.

RETAIL SALES REVENUE

5) Did the department receive revenue from the sale of goods or merchandise?*

Examples would include sales of inventory from a store, catalog, or via the internet.

5.2) Do any of the items sold have a useful life of more than one year (i.e. a computer)?*
5.4) Does the operation allocate sales into related and unrelated item categories, and maintain accurate records of each?*
5.5) Does the operation allocate expenses into related and unrelated item categories, and maintain accurate records of each?*
5.6) Is this activity carried on with a profit motive?*
5.7) Are the merchandise sells related to UGA's exempt purpose (educational) or for the convenience of members?*

OTHER REVENUE SOURCES

6) Does the department have any revenue from investments that are debt financed (e.g., bought on margin, mortgaged)?*

Investment revenue examples would include securities, property, interest, dividends, rent, royalties, capital gains, etc.

7) Does the department own an interest in an alternative investment in a foreign country?*
8) Does the department have an interest in an entity other than a blocker corporation?*

For example, an interest in a foreign partnership or LLC.

9) Was the department involved in a partnership or joint venture in the previous fiscal year?*
9.1) Was the partnership or joint venture with a taxable organization?*
9.2) Does the K-1 received show Unrelated Business Income?*
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10) Does the department have more than a 50% ownership interest in a controlled taxable subsidiary (whether direct or indirect) such as interest, rent, or royalties?*
11) Does the department operate a cafeteria or restaurant where food is sold to individuals other than students, faculty, or staff?*
12) Does the department operate a parking lot where parking is provided to individuals other than students, faculty, or staff?*
13) Does the department provide catering services to individuals or business other than internal departments of the university?*
14) Does the department provide printing services to individuals or businesses other than internal departments of the university?*
15) Does the department conduct research, testing, analysis or consulting for commercial entities or individuals outside the University that are NOT affiliated with the State or Federal Government and/or a College/University?*

Research for the United States, any of its agencies or instrumentalities, and any State or political subdivision should NOT be included.

15.1) Is this activity carried on with a profit motive?*
15.2) Is this activity regularly carried on?*
15.3) Is this activity related to UGA's exempt purpose (educational)?*
15.4) Does the testing involve a technologically advanced or unique product/service (not available commercially)?*
15.5) Are results of the research available to be disclosed to the general public?*
15.6) Are students involved in the activity as a part of their degree program or training?*
16) Did the department receive an award from entities or individuals outside of the University?*
16.1) Is the purpose of the award to provide testing, analysis or consulting?*
16.2) Are the results of the testing, analysis, or consulting available to be disclosed to the general public?*
17) Does the department provide management or administrative services to organizations outside the University?*

Examples would include billing and collection or other support services.

18) Does the department provide travel tours?*

Studies abroad should NOT be included.

18.1) Is the tour structured as a bona fide educational activity with organized study, lectures, reports, etc.?*
19) Does the department conduct games of chance (excluding bingo)?*
20) Does the department operate a fitness center/ health club where membership is available to individuals other than students, faculty, or staff?*
21) Does the department operate a hotel?*
22) Does the department operate a golf course?*
23) Does the department sell excess electrical power (or similar power)?*
24) Does the department own a working interest in a mineral property (i.e., oil or gas)?*
25) Does the department conduct a convention or trade show unrelated to instruction, research or UGA's public service mission?*
26) Does the department host any summer camps?*
26.2) Is the camp run by:*
26.3) Is the camp activity related to UGA's exempt purpose (educational)?*
27) Does the department perform nonpatient laboratory testing on referred specimens form private office patients of staff physicians?*
27.1) Is this service readily available in the community from an external (non-UGA source)?*
28) Does the department provide pet boarding or grooming services?*
29) Does the department sell cattle/ livestock on a commission basis?*
30) Does the department sell endorsements? For example, endorsing laboratory equipment.*
31) Did the department sell timber?*
32) Does the department have any other source of unrelated business income not specifically addressed?*
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