The Catholic University of America

Associate Vice President for Campus Activities

Federal Laws

Use of Bond Financed Facilities

The Director of Conferences and Pryzbyla Management will, in advance of any lease or license or other arrangement involving Private Use of tax-exempt bond financed facilities ("Private Use Arrangement") or any change to a Private Use Arrangement, review the proposed Private Use Arrangement with the General Counsel in accordance with the Contract Policy.

The Director of Conferences and Pryzbyla Management must forward information identifying to whom the space was dedicated, the period for which the space was dedicated, the dollar amount of the income received and the percentage of space used to the Executive Assistant for the VP of Finance within a month after the arrangement has finished or by April 30 of the fiscal year, whichever is earlier.

Records to be kept are all documentation evidencing use of Facilities by public and private sources, including copies of management contracts and research agreements. All records should be kept in a manner that ensures their complete access to the IRS for so long as they are material, which is as long as the bonds are outstanding, plus 3 years after the final redemption of the bonds.

Unrelated Business Income Tax

26 U.S.C. § 511(a)(2); 26 C.F.R. §§ 1.511-1 to 1.513-4
Income from an activity that is a trade or business, regularly carried on, and not substantially related to the conduct of the institution's educational or scientific research purposes will be considered unrelated business income and is taxable. The IRS has opined that income derived by a college or university from fees received by alumni or the general public is unrelated business income. Those items sold by the university to students, faculty and staff that are required or otherwise necessary for courses of instruction or fall under the "convenience exception" will not constitute unrelated business income. With the exception of items that have the university logo affixed, the IRS takes the position that non-educational items with a useful life of more than one year are subject to the unrelated business income tax (UBIT). The IRS holds that an institution must have an accounting system in place to deal with sales that are subject to UBIT and those that are not subject to UBIT.

Use of university facilities in unrelated activities will be subject to UBIT. Mailing list income is not subject to UBIT if the list is sold or exchanged to other exempt organizations. A corporate sponsorship issue arises when a company makes a gift to the school and in return receives certain publicity and exposure beyond a mere acknowledgment of the payment. The IRS will closely examine the relationship between the university and any related entity that has potentially unrelated business activities.

The Director of Conferences and Pryzbyla Management is responsible for reporting unrelated business income from Conference or Pryzbyla activities to the Controller.

Legislative and Political Activities (Tax)

Summary of the Law
In order to maintain their tax-exempt status under 501(c)(3), private colleges and universities must not engage in, or interfere with, political campaign or lobbying activities. Failure to follow these proscriptions could result in loss of tax-exempt status for the institution, or imposition of an excise tax. The university cannot endorse any particular candidate. For a more complete explanation of the prohibitions from the IRS, please reference the above Legislative and Political activities link.

Responsibilities
The Director for Conferences and Pryzbyla Management has responsibility for ensuring that use of conference space does not violate the tax policy against promotion of a particular candidate for office. Any rental of rooms must be in accord with these rules, i.e. rental of space for any campaign activity would have to be for a fair market value.

DC Law

DC Sales and Use Taxes

This position is responsible for collecting DC sales and use tax for lodging, meals, equipment, linens, phones and other services provided by the university to external groups.

Resources

List of bond financed buildings at CUA: Data good as of March 2013

Opus Hall  - *chapel;
Centennial Village
Millennium (N/S)

Columbus School of Law
Gowan Hall
Crough Hall
Mullen Library
McGivney Hall
Leahy Hall
Pryzbyla Center

McCort Ward
Facilities Ground Center

The highlighted buildings are not to be used to house people associated with organizations determined to be bad use. 

Permissible Use of Bond Financed Facilities Chart (by Tom Roha)

Unrelated Business Income Tax

Tax Exempt Bond FAQs Regarding Record Retention Requirements

Related Policies

Private Use of University Facilities
Co-Curricular Scheduling Policy
Tax Compliance Policy

updated 3/11/13