Unrelated Business Income (UBI) is gross income earned from a trade or business that is regularly carried on by a college or university and is not substantially related to the performance of its exempt purpose or function except that the institution uses the profits derived from this activity.  Examples of UBI include advertising, sales of merchandise, ticket sales for entertainment, commercial filming, and photography, catering to outside organizations, and campus recreation center memberships sold to non-students and non-employees.

The Institute is not exempt from Federal or State income tax imposed on UBI activities. Georgia Tech prepares Federal and State income tax returns annually to report UBI to the Internal Revenue Service (IRS) and to the State of Georgia.  A survey is sent annually to departments that have known unrelated business income in their operating plans. If a Georgia Tech unit is planning a new revenue -generating activity, or planning to engage in an activity that may be subject to taxation as UBI, they should contact the Senior Tax Compliance Manager in the Georgia Tech Controller’s Office for guidance. An example of the Unrelated Business Income/Sales Tax Compliance Survey is available at this link. 

Georgia Tech follows USG Business Procedures Manual - Section 23 for managing and reporting UBI activities.