Exempt organizations that generate business income unrelated to the organization’s mission must file a federal income tax return. See Unrelated Business Income (UBI) Tax. The Federal Form 990-T is used to report the net taxable income from those unrelated activities. The University is also required to file in various states where unrelated business income is derived, as well as the City of Philadelphia (see Business Income and Receipts Tax (BIRT).
For more information, visit the IRS website.