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Master's Professional Reports Abstract



Devolution's Discord: Resolving Operational Dissonance with the UBIT Exemption

This report addresses a pressing problem in tax policy: the federal government has asked public charities to take on its role in providing social services without properly subsidizing charities efforts. The report defines operational dissonance, the social phenomenon where government directs charities to take on its role in providing poverty services, but maintains a tax code that prevents them from gaining enough capital to provide these services. Specifically, the report suggests that we exempt charities from the "substantially related" test of the unrelated business income tax, thereby permitting them to more freely engage in commercial enterprises. The discussion establishes that until poverty-servicing charities are able to engage in protected business ventures, they will be unable to fill their role in providing services to the poor.

--Author's foreword.