For-profit ventures help nonprofits shore up the funding they need to maintain and expand their programs

By Abny Santicola

Because of the length of time until breakeven, it’s vital that organizations set aside enough startup capital. Be realistic about how much money is going to come in from the venture and what it’s going to cost until breakeven. And look at the UBIT question to determine whether or not taxes are going to have to be paid. Though UBIT is not necessarily a bad thing and in most cases won’t jeopardize an organization’s tax-exempt status, it is a cost and needs to be taken into consideration during the planning process because it can make what might seem like a profitable venture unprofitable.