VIDEO Q&A for Subscribers: October 2025
Ben and Mike answer questions from subscribers about converting from 501(c)(4) to 501(c)(3) status, communicating the financial condition of an organization with significant restricted funds on the balance sheet, how much unrelated business income tax (UBIT) is too much, and considerations when opening a bank account in a foreign country outside of the United States.
CHAPTERS:
00:00 - Intro
00:37 - How to convert from 501(c)(4) to 501(c)(3) states and transfer assets
07:40 - How to communicate an organization's financial condition to the Board when the balance sheet has a significant amount of restricted funds
14:23 - At what point does having unrelated business taxable income become a concern for an organization's tax-exempt status
20:19 - Preparing to allocate staff time, overhead, and other expenses to an unrelated business
21:21 - Considerations for organizations that need to open a bank account outside of the United States
FURTHER READING:
Q&A #155 – Can a nonprofit convert to 501(c)(3) status from another tax-exempt status?
Optimizing the Use of Restricted Funds Through an Annual Inventory and Assessment
The Fundamentals of the Unrelated Business Income Tax (UBIT)
