Which of the following activities regularly conducted by a tax-exempt organization will result in unrelated business income? A. Selling items made by persons with disabilities as part of their rehabilitation when the organization is involved exclusively in their rehabilitation. B. Operating a grocery store staffed almost entirely by persons with mental health conditions as part of a therapeutic program. C. Regularly holding a casino night fundraiser that is open to the public but staffed entirely by unpaid volunteers. D. Selling pet boarding and grooming services to the general public when the organization is involved in preventing cruelty to animals.

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter3: Business Income And Expenses
Section: Chapter Questions
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Which of the following activities regularly conducted by a tax-exempt organization will result in unrelated business income?
A. Selling items made by persons with disabilities as part of their rehabilitation when the organization is involved exclusively in their rehabilitation.
B. Operating a grocery store staffed almost entirely by persons with mental health conditions as part of a therapeutic program.
C. Regularly holding a casino night fundraiser that is open to the public but staffed entirely by unpaid volunteers.
D. Selling pet boarding and grooming services to the general public when the organization is involved in preventing cruelty to animals.

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