Accounting for facility rental fees.

by Bob
(Covington, KY)

Our church lets outside groups use our facility and asks for a "donation" for use of such areas, I assume to avoid unrelated business use issues. Should I record these "contributions" as a donation or as other revenue?

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Comments for Accounting for facility rental fees.

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Aug 23, 2010
 Unrelated Business Income
by: Vickey

Other Revenue. It would not be a donation as the donors receive something for it (the use of the facility). It would probably be considered unrelated business income; however, you wouldn’t have to file a form 990-T, unless you have over $1,000 of gross UBI in a given fiscal year.

Sep 29, 2010
 "related" income
by: Anonymous

If said rental was for a ministry which fits within the mission of our church, does it still need to be considered unrelated income? E.g. a Korean Church pays us a small, monthly rental fee to meet in our building. We view this as an outreach of our church and the income covers our expenses (but not much more).
Aug 30, 2011
 Unrelated Business Income
by: Anonymous

Is rent income from a house owned by the church and located on the same property as another church facility considered as unrelated business income?

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