⊕ SERVICE 03
Know Where
Your Revenue
Actually Stands
Nonprofit organizations often generate revenue from more than one source. Not all of it falls neatly within your exempt purpose — and understanding which activities carry tax obligations is something worth knowing clearly, not discovering later.
⊕ WHAT YOU CAN EXPECT
A Clear Picture of Your Revenue Obligations
When Stannex completes an unrelated business income analysis for your organization, you come away with a clear understanding of which revenue streams fall within your exempt purpose and which may carry separate tax obligations — along with any required filings prepared and expense allocations properly documented.
The goal isn't to generate concerns. It's to give you an accurate, organized view of where your organization stands so you can plan and operate with confidence.
⊕ THE CHALLENGE
Why This Area Gets Overlooked
The line isn't always obvious
Some revenue activities are clearly related to an organization's exempt purpose. Others sit in a grey area where the classification depends on how the activity is structured, conducted, and described — which requires careful analysis rather than assumption.
Expense allocation adds complexity
Even when unrelated business income is identified, calculating the actual tax liability requires allocating shared costs between exempt and taxable activities — a step that's easy to shortcut but matters considerably for accuracy.
Unaddressed obligations accumulate
Organizations that haven't reviewed their revenue mix in some time may have filing obligations they're unaware of. Catching these before they become an issue is considerably better than dealing with them after a review by the taxing authority.
⊕ THE APPROACH
A Methodical Review of What Your Organization Earns
The analysis starts from the revenue side — examining each income source against the definition of unrelated business income and your organization's specific exempt purpose. From there, relevant expenses are allocated and any required filings are prepared.
⊕ STEP ONE
Revenue Source Review
Each revenue stream is examined to determine whether it arises from activities regularly carried on, conducted as a trade or business, and not substantially related to your exempt purpose — the three-part test that defines unrelated business income.
⊕ STEP TWO
Expense Allocation
Costs shared between exempt and taxable activities are allocated against the unrelated business income — reducing the taxable figure to what's genuinely attributable to those activities.
⊕ STEP THREE
Filing Preparation
Where the analysis identifies filing obligations, the required returns are prepared as part of this engagement. No separate engagement needed if the review uncovers something that needs to be filed.
⊕ STEP FOUR
Summary & Guidance
A clear summary of findings — what was reviewed, what was found, and what it means for how your organization manages its activities going forward. Written in plain language, not accounting shorthand.
⊕ HOW IT WORKS
Working Through the Analysis Together
The process is thorough but straightforward. You provide the financial records; we do the detailed work and bring you clear findings.
Revenue Overview
We start with a conversation about your organization's revenue sources and activities — what you do, what you charge for, and how different income streams relate to your mission.
Document Gathering
You provide financial statements, revenue records, and expense documentation. We tell you exactly what's needed based on your organization's profile.
Analysis & Categorization
The detailed work happens here. Revenue streams are reviewed, classified, and expenses allocated. Any filing requirements identified at this stage are incorporated into the engagement.
Findings & Handoff
The summary of findings is reviewed with you, questions answered, and the complete documentation handed off. You leave with a clear picture and organized records.
⊕ INVESTMENT
What This Service Costs
A flat fee covers the full scope of the revenue analysis, expense allocation, filing preparation where required, and findings summary.
UNRELATED BUSINESS INCOME ANALYSIS
Revenue Review & Compliance
SERVICE FEE
$700
USD
⊕ INCLUDED IN THIS SERVICE
- ▪ Review of all revenue streams to identify activities that may constitute unrelated business income
- ▪ Application of the relevant three-part test to each revenue source within your exempt framework
- ▪ Expense allocation across exempt and taxable activities based on documented cost relationships
- ▪ Preparation of any required filings identified during the analysis, included within this engagement
- ▪ Written summary of findings in plain language — what was found and what it means for your organization
- ▪ Guidance on how to manage taxable activities appropriately within your exempt framework going forward
- ▪ Organized documentation of the analysis for your records
⊕ METHODOLOGY
How the Analysis Is Conducted
The approach is consistent and structured — starting from the source documents and working through each revenue stream methodically before drawing any conclusions.
⊕ FRAMEWORK
The Three-Part Test
Each revenue stream is evaluated against whether the activity is regularly carried on, constitutes a trade or business, and is not substantially related to your exempt purpose. All three must be present for income to qualify as unrelated business income.
Applied consistently to every revenue source
⊕ CALCULATION
Net Income Determination
Gross unrelated business income is only part of the picture. Properly allocated expenses reduce the net figure to what's actually attributable to those activities — which affects both the filing obligation and any tax owed.
Documented with supporting calculations
⊕ OUTPUT
Findings & Forward View
Beyond identifying what exists, the summary includes practical notes on how each identified activity could be managed within your exempt framework — giving you something to work from, not just a record of what was found.
Typical timeline: 1–3 weeks from document receipt
⊕ OUR COMMITMENT
What We Stand Behind
Findings reviewed with you before anything is finalized
The analysis results are walked through with you in detail before they become part of any formal documentation or filing. You have the opportunity to ask questions and discuss implications.
Plain-language explanations throughout
Every classification decision is explained in terms that make sense outside of accounting — what the rule is, why it applies to your situation, and what the consequence is for your organization.
Filings included if the analysis surfaces them
If the review identifies a filing obligation, preparing that return is part of this engagement — not a separate cost to negotiate after the fact.
Initial consultation at no obligation
Reach out before committing. We'll discuss your organization's revenue picture and let you know what the analysis would involve before you decide anything.
⊕ GETTING STARTED
What Happens When You Reach Out
Tell us about your revenue picture
Use the contact form to briefly describe your organization and the revenue activities you'd like reviewed. We'll follow up within one business day.
We'll confirm the scope
A short conversation to understand which revenue streams are in scope, what documents you'll need to provide, and what the engagement will look like in practice.
The analysis begins
Once you've provided the relevant financial records, we work through the review and come back to you with clear findings — and anything that needs to be filed, prepared as part of the same engagement.
⊕ READY WHEN YOU ARE
Not Sure Where Your Revenue Stands?
Reach out and we'll talk through your situation. A quick conversation is often enough to clarify whether this analysis would be useful for your organization — with no pressure to proceed until you're ready.
REACH OUT — $700 USD⊕ EXPLORE OTHER SERVICES
Other Ways Stannex Can Help
⊕ SERVICE 01
Nonprofit Tax Return Preparation
Annual information returns for exempt organizations, covering all required schedules, expense allocations, and governance disclosures.
⊕ SERVICE 02
Tax-Exempt Status Application Support
Financial documentation and record preparation for exemption applications, including budget projections and financial narrative.