Earned Income Issues and Guidance for California Nonprofits (Audio Only)

(218 Ratings)

Produced on: January 13, 2017

Course Format On Demand Audio Audio Only

Taught by


Course Description

Time 61 minutes
Difficulty Intermediate

Many people are surprised to learn that over 70% of the revenues from reporting public charities comes from the sale of goods and services. And charities are increasingly engaging in earned income (and social enterprise) ventures as they face the simultaneous challenges of uncertainty in public fundraising and the tax benefits associated with charitable giving, undependable philanthropic funding, and increased competition for limited resources. But earned income is an area wrought with misconceptions and misunderstandings.

The rules governing unrelated business taxable income (UBTI) are complex. As a result, many non-profits simply fail to properly report and pay taxes on their UBTI or preclude themselves from starting an earned income venture. As the differences in the activities of nonprofit and for-profit organizations continue to blur with the increasing commercialization of charities and the growth of socially-purposed taxable entities (like the benefit corporation), the associated tax issues will only get more complicated. Subsidiaries, joint ventures, and commercial co-ventures may be useful options for some nonprofits if entered into with sufficient knowledge and consideration.

This audio-only course, taught by Gene Takagi, the managing attorney of NEO Law Group, a firm specializing in nonprofit law, reviews the legal issues that should be considered when reviewing a non-profit's earned income venture and offers practical guidance on best practices for both in-house and outside counsel.

Learning Objectives:

  1. Understand how to assess an existing or planned profit-making venture for corporate and tax law compliance
  2. Distinguish between related and unrelated businesses
  3. Learn when unrelated business income tax (UBIT) gets triggered and what deductions are appropriate to take to minimize the organization's tax burden
  4. Assess when a subsidiary or affiliated entity may be of use and what legal forms (including hybrid forms) such an entity may take


Gene Takagi

NEO Law Group

Gene Takagi is the managing attorney of NEO Law Group, contributing publisher of the Nonprofit Law Blog, and a regular contributor to Tony Martignetti Nonprofit Radio. At NEO, Gene has represented over 400 nonprofit organizations on corporate, tax, and charitable trust law matters. Gene is a popular writer on nonprofit legal topics and has been published by The Chronicle of Philanthropy, The Nonprofit Times, The Nonprofit Quarterly, Taxation of Exempts, and ALI-ABA.

He is also a popular speaker who has presented at conferences for Independent Sector, BoardSource, Net Impact, CalNonprofits, the American Bar Association, the Northern California Planned Giving Council, Social Media for Nonprofits, the National Network of Fiscal Sponsors, and numerous local and regional bar and CPA associations. Gene’s professional experiences are diverse: corporate attorney for Sheppard Mullin Richter & Hampton LLP, professor of nonprofit law at the University of San Francisco, director of the medical and behavior divisions of the San Francisco SPCA, management consultant for Allders International (specialty retail), and managing director of Suki’s International (beauty/education).

This background helps him provide clear, understandable legal advice with an appreciation of the relevant business issues. Gene, a graduate of UCLA School of Law, is a recipient of multiple awards for his work, including Outstanding Barrister of the Year (Bar Association of San Francisco) and Northern California Super Lawyer (2015), and also has a graduate degree in nonprofit administration.  

Gene currently serves on the board of CompassPoint and the public policy committee of Independent Sector and previously served on the boards of Net Impact, the Japanese Community Youth Council (JCYC), Community Initiatives (fka CIF of the San Francisco Foundation), Community Thrift Store, and the Barristers Club of the Bar Association of San Francisco (where he also served as chair of the Pro Bono Issues Committee).


Gerald C.


Dave D.

well planned out

Erin H.

Presenter was good - easy to listen to.

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$ 59 Tax Law, Business, Corporate, & Securities Law, Non-Profit, and Public Interest Law In Stock


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