Option #1: NFP financial reporting

The Four Corners Theater’s mission is to increase access to the arts for the community of Four Corners. The Theater group owns a debt-financed theater and puts on several plays throughout the year, as well as providing facilities for many other activities. Four Corner’s Theater is a well-established, not-for profit organization exempt under IRC Sec. 501(c)(3).

Identify whether the following activities would be subject to unrelated business income tax (UBIT) and explain why or why not.

1. Rental of the facility to the high school drama club.
2. Fees for summer acting classes for primary school students.
3. Sale of tickets to plays put on by the Four Corner’s Theater group.
4. Sale of season ticket membership list to a local book store.
5. Rental of two apartments in the facility.
6. Rental of meeting space to other local 501(c)(3) organizations for their monthly meetings.
7. Internet sales of gift shop items with the Four Corner’s Theater logo.
8. Lease of the facility’s parking lot to the local university on football game days.

Requirements:

• Write a paper of 4-6 pages in length, not counting the title and reference pages, which you must include.
• Use terms, evidence, and concepts from class readings, including professional business language.
• Cite at least three credible, academic, or professional sources for this assignment, outside of the textbook. The CSU-Global Library (Links to an external site.) is a great place to find resources.
• Format your paper according to CSU-Global Guide to Writing & APA (Links to an external site.).