Budgeting & UBIT

MSAE's Financial & Accounting Networking Group met recently to discuss budgeting for associations and UBIT (unrelated business income tax), as it relates to the financial side of business.  Below are the top takeaways from the meeting:

• Rolling Forecast - seeing more nonprofits use this type of budgeting, there is no set budget but the organization is constantly looking at numbers (for example, 12 months ahead at all times, vs. one calendar year).
• UBIT - the group talked about the difference between sponsorships (no qualitative statement about product or service), endorsements (hands on activity or call to action for preferred vendor) and royalties (excluded from UBIT).  
• Always remember that profit is good and if UBIT is required, it's still profit

The group will meet next on Tuesday, October 2 to discuss Health Insurance & Benefits. To register, visit www.msae.com/calendar.