I am helping with a return, 990, for an affiliate of AQHA - the are a 501c5. My question has to do with unrelated business income. They have a raffle, a silent auction and a program guide with advertisment in it l. Would any of these be taxable?
How often are the raffle, and auction conducted? How often is the program guide published? Who gets it? What do they get for their advertising dollars?
Each activity is once a year. The members get the program guide @ activities. All the advertisers get is their name ad in the guide.
Sounds like these activities are infrequent enough and the advertising is not commercial enough to be UBIT. You should do some more research, though.
