Internal Revenue Code · 26 U.S.C.
§ 511. Imposition of tax on unrelated business income of charitable, etc., organizations
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 511
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Enacted
- July 14, 1960 by Pub. L. 86–667
- Last amended
- November 10, 1988 by Pub. L. 100–647
- Amendments
- 7 dated changes in the source credit
- Length
- 3 subsections · 613 words · about 3 min to read
- Cross-references
- cites 6; cited by 36 Code sections and 68 other regulations
- Regulations
- 4 issued under this section
There is hereby imposed for each taxable year on the unrelated business taxable income (as defined in section 512) of every organization described in paragraph (2) a tax computed as provided in section 11. In making such computation for purposes of this section, the term “taxable income” as used in section 11 shall be read as “unrelated business taxable income”.
The tax imposed by paragraph (1) shall apply in the case of any organization (other than a trust described in subsection (b) or an organization described in section 501(c)(1)) which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of section 501(a).
The tax imposed by paragraph (1) shall apply in the case of any college or university which is an agency or instrumentality of any government or any political subdivision thereof, or which is owned or operated by a government or any political subdivision thereof, or by any agency or instrumentality of one or more governments or political subdivisions. Such tax shall also apply in the case of any corporation wholly owned by one or more such colleges or universities.
There is hereby imposed for each taxable year on the unrelated business taxable income of every trust described in paragraph (2) a tax computed as provided in section 1(e). In making such computation for purposes of this section, the term “taxable income” as used in section 1 shall be read as “unrelated business taxable income” as defined in section 512.
The tax imposed by paragraph (1) shall apply in the case of any trust which is exempt, except as provided in this part or part II (relating to private foundations), from taxation under this subtitle by reason of section 501(a) and which, if it were not for such exemption, would be subject to subchapter J (sec. 641 and following, relating to estates, trusts, beneficiaries, and decedents).
(Aug. 16, 1954, ch. 736, 68A Stat. 169; Pub. L. 86–667, § 3, July 14, 1960, 74 Stat. 535; Pub. L. 89–352, § 2, Feb. 2, 1966, 80 Stat. 4; Pub. L. 91–172, title I, § 121(a)(1)–(3), title III, § 301(b)(8), title VIII, § 803(d)(2), Dec. 30, 1969, 83 Stat. 536, 585, 684; Pub. L. 95–30, title I, § 101(d)(6), May 23, 1977, 91 Stat. 133; Pub. L. 95–600, title III, § 301(b)(5), title IV, § 421(e)(3), Nov. 6, 1978, 92 Stat. 2821, 2876; Pub. L. 97–248, title II, § 201(d)(5), formerly § 201(c)(5), Sept. 3, 1982, 96 Stat. 419, renumbered § 201(d)(5), Pub. L. 97–448, title III, § 306(a)(1)(A)(i), Jan. 12, 1983, 96 Stat. 2400; Pub. L. 100–647, title I, § 1007(g)(6), Nov. 10, 1988, 102 Stat. 3435.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 511
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 6 other sections
- § 512 Unrelated business taxable income
- § 11 Tax imposed
- § 401(a) Qualified pension, profit-sharing, and stock bonus plans
- § 501(c) Exemption from tax on corporations, certain trusts, etc.
- § 1(e) Tax imposed
- § 641 Imposition of tax
Cited by 36 Code sections
- § 12(1) Cross references relating to tax on corporations
- § 50(b)(3) Other special rules
- § 56A(c)(12) Adjusted financial statement income
- § 168(h)(1)(D) Accelerated cost recovery system
- § 199A(g)(5)(D) Qualified business income
- § 220(e)(1) Archer MSAs
- § 223(e)(1) Health savings accounts
- § 337(b)(2)(B)(i) Nonrecognition for property distributed to parent in complete liquidation of subsidiary
- § 408(e)(1) Individual retirement accounts
- § 448(d)(6) Limitation on use of cash method of accounting
- § 501(m)(2)(B) Exemption from tax on corporations, certain trusts, etc.
- § 509(a)(2)(B)(ii) Private foundation defined
- § 512(a)(2) Unrelated business taxable income
- § 513(a) Unrelated trade or business
- § 514(b)(1)(A)(i) Unrelated debt-financed income
- § 515 Taxes of foreign countries and possessions of the United States
- § 527(f)(2)(B) Political organizations
- § 529(a) Qualified tuition programs
- § 529A(a) Qualified ABLE programs
- § 530(a) Coverdell education savings accounts
- § 856(d)(7)(C)(ii) Definition of real estate investment trust
- § 860E(b) Treatment of income in excess of daily accruals on residual interests
- § 995(g) Taxation of DISC income to shareholders
- § 1245(b)(6)(A) Gain from dispositions of certain depreciable property
Show 12 more
- § 1250(d)(6)(A) Gain from dispositions of certain depreciable realty
- § 1443(a) Foreign tax-exempt organizations
- § 1563(b)(2)(B) Definitions and special rules
- § 2651(f)(3)(A) Generation assignment
- § 4940(b)(1) Excise tax based on investment income
- § 4968(c)(4) Excise tax based on investment income of private colleges and universities
- § 6011(h) General requirement of return, statement, or list
- § 6104(b) Publicity of information required from certain exempt organizations and certain trusts
- § 6654(l)(3) Failure by individual to pay estimated income tax
- § 6655(g)(3)(A) Failure by corporation to pay estimated income tax
- § 7611(d)(2)(A)(i) Restrictions on church tax inquiries and examinations
- § 7871(a)(5) Indian tribal governments treated as States for certain purposes
Cited in 68 regulations not issued under it
- § 1.11-1 Tax on corporations.
- § 1.57-1 Items of tax preference defined.
- § 1.103-7 Industrial development bonds.
- § 1.168(j)-1T Questions and answers concerning tax-exempt entity leasing rules (temporary).
- § 1.250(a)-1 Deduction for foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI).
- § 1.250(b)-1 Computation of foreign-derived intangible income (FDII).
- § 1.337(d)-4 Taxable to tax-exempt.
- § 1.362-3 Basis of importation property acquired in loss importation transaction.
- § 1.401-1 Qualified pension, profit-sharing, and stock bonus plans.
- § 1.408-1 General rules.
- § 1.448-1T Limitation on the use of the cash receipts and disbursements method of accounting (temporary).
- § 1.448-2 Limitation on the use of the cash receipts and disbursements method of accounting for taxable years beginning after December 31, 2017.
- § 1.467-7 Section 467 recapture and other rules relating to dispositions and modifications.
- § 1.501(a)-1 Exemption from taxation.
- § 1.501(c)(3)-1 Organizations organized and operated for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or for the prevention of cruelty to children or animals.
- § 1.501(c)(5)-1 Labor, agricultural, and horticultural organizations.
- § 1.501(c)(6)-1 Business leagues, chambers of commerce, real estate boards, and boards of trade.
- § 1.501(c)(17)-2 General rules.
- § 1.501(r)-2 Failures to satisfy section 501(r).
- § 1.502-1 Feeder organizations.
- § 1.509(a)-3 Broadly, publicly supported organizations.
- § 1.509(a)-4 Supporting organizations.
- § 1.512(a)-1 Definition.
- § 1.512(a)-2 Definition applicable to taxable years beginning before December 13, 1967.
Show 44 more
- § 1.512(a)-4 Special rules applicable to war veterans organizations.
- § 1.512(a)-6 Special rule for organizations with more than one unrelated trade or business.
- § 1.512(b)-1 Modifications.
- § 1.512(c)-1 Special rules applicable to partnerships; in general.
- § 1.513-1 Definition of unrelated trade or business.
- § 1.513-2 Definition of unrelated trade or business applicable to taxable years beginning before December 13, 1967.
- § 1.513-4 Certain sponsorship not unrelated trade or business.
- § 1.513-5 Certain bingo games not unrelated trade or business.
- § 1.514(a)-1 Unrelated debt-financed income and deductions.
- § 1.514(a)-2 Business lease rents and deductions for taxable years beginning before January 1, 1970.
- § 1.514(b)-1 Definition of debt-financed property.
- § 1.514(f)-1 Definition of business lease.
- § 1.529A-1 Exempt status of qualified ABLE program and definitions.
- § 1.543-1 Personal holding company income.
- § 1.642(i)-2 Definitions.
- § 1.852-9 Special procedural requirements applicable to designation under section 852(b)(3)(D).
- § 1.1201-1 Alternative tax.
- § 1.1254-2 Exceptions and limitations.
- § 1.1298-1 Section 1298(f) annual reporting requirements for United States persons that are shareholders of a passive foreign investment company.
- § 1.1400Z2(a)-1 Deferring tax on capital gains by investing in opportunity zones.
- § 1.1502-100 Corporations exempt from tax.
- § 1.1563-1 Definition of controlled group of corporations and component members and related concepts.
- § 1.6001-1 Records.
- § 1.6012-2 Corporations required to make returns of income.
- § 1.6012-3 Returns by fiduciaries.
- § 1.6038-4 Information returns required of certain United States persons with respect to such person's U.S. multinational enterprise group.
- § 1.6072-1 Time for filing returns of individuals, estates, and trusts.
- § 1.6302-1 Deposit rules for corporation income and estimated income taxes and certain taxes of tax-exempt organizations.
- § 1.6417-1 Elective payment election of applicable credits.
- § 2.1 Statutory provisions; sections 511 and 905, Merchant Marine Act, 1936, and related statutes.
- § 2.1-12 Election as to nonrecognition of gain.
- § 2.1-24 Extent of tax liability.
- § 53.4940-1 Excise tax on net investment income.
- § 53.4942(a)-2 Computation of undistributed income.
- § 53.4945-6 Expenditures for noncharitable purposes.
- § 53.4968-1 Excise tax based on investment income of certain private colleges and universities.
- § 53.4968-2 Net investment income.
- § 56.4911-4 Exempt purpose expenditures.
- § 301.6011-10 Certain organizations, including trusts, required to file unrelated business income tax returns in electronic form.
- § 301.7605-1 Time and place of examination.
- § 301.7611-1 Questions and answers relating to church tax inquiries and examinations.
- § 301.9100-7T Time and manner of making certain elections under the Tax Reform Act of 1986.
- § 305.7871-1 Indian tribal governments treated as States for certain purposes.
- § 601.201 Rulings and determinations letters.
Amendment history
From the source credit and the official notes, newest first.
- Amended by Pub. L. 100–647Parts changed in 1988: (d)
- Amended by Pub. L. 97–448
- Amended by Pub. L. 97–248Parts changed in 1982: (d)(2)
- Amended by Pub. L. 95–600Parts changed in 1978: (a)(1) (a)(2) (d)
- Amended by Pub. L. 95–30Parts changed in 1977: (b)(1)
- Amended by Pub. L. 91–172Parts changed in 1969: (a)(2)(A) (b)(1) (b)(2) (c) (d)
- Amended by Pub. L. 89–352Parts changed in 1966: (a)(2)(A)
- Enacted by Pub. L. 86–667Parts changed in 1960: (a)(2) (b)
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter F Exempt Organizations
- Part III TAXATION OF BUSINESS INCOME OF CERTAIN EXEMPT ORGANIZATIONS
Nearby sections
- § 511 Imposition of tax on unrelated business income of charitable, etc., organizations
- § 512 Unrelated business taxable income
- § 513 Unrelated trade or business
- § 514 Unrelated debt-financed income
- § 515 Taxes of foreign countries and possessions of the United States
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
Amendments
1988—Subsec. (d). Pub. L. 100–647 struck out subsec. (d) which read as follows: “Tax Preferences.—
“(1) Organizations taxable at corporate rates.—If an organization is subject to tax on unrelated business taxable income pursuant to subsection (a), the tax imposed by section 56 shall apply to such organizations with respect to items of tax preference which enter into the computation of unrelated business taxable income in the same manner as section 56 applies to corporations.
“(2) Organizations taxable as trusts.—If an organization is subject to tax on unrelated business taxable income pursuant to subsection (b), the taxes imposed by section 55 shall apply to such organization with respect to items of tax preference which enter into the computation of unrelated business taxable income.”
1982—Subsec. (d)(2). Pub. L. 97–248 substituted “section 55” for “section 55 and section 56 (as the case may be)”.
1978—Subsec. (a)(1). Pub. L. 95–600, § 301(b)(5)(A), substituted “a tax” for “a normal tax and a surtax”.
Subsec. (a)(2). Pub. L. 95–600, § 301(b)(5)(B), substituted “tax” for “taxes” wherever appearing.
Subsec. (d). Pub. L. 95–600, § 421(e)(3), substituted provisions relating to organizations taxable at corporate rates and organizations taxable as trusts, for provisions relating to imposition of the tax imposed by section 56 of this title to an organization subject to tax under this section for tax preferences computed in unrelated business taxable income.
1977—Subsec. (b)(1). Pub. L. 95–30 substituted “section 1(e)” for “section 1(d)”.
1969—Subsec. (a)(2)(A). Pub. L. 91–172, § 121(a)(1), removed reference, in heading, to pars. (2), (3), (5), (6), (14)(B), (C), and (17) of section 501(c) of this title, and, in text, struck out exemptions to churches, conventions, or associations of churches, from the imposition of tax on their unrelated business income, made corporations organized under section 501(c)(1) of this title (i.e. organized under Acts of Congress), exempt from such tax, but made all such exemptions subservient to the exceptions in part II and section 501(a) of this title.
Subsec. (b)(1). Pub. L. 91–172, § 803(d)(2), substituted section 1(d) for section 1 in reference to section under which the computation of the tax dealing with the imposition of tax on the unrelated business taxable income of trusts, is computed.
Subsec. (b)(2). Pub. L. 91–172, § 121(a)(2), pluralized “trust” in heading and in text made the imposition of tax on the unrelated business income of exempt trusts subject to provisions of part II, and, for purposes of determining trusts exempt from taxation, substituted reference to section 501(a) for reference to “section 501(c)(3) or (17) or section 401(a)”.
Subsec. (c). Pub. L. 91–172, § 121(a)(3), added subsec. (c). Former subsec. (c), covering the effective date, was struck out.
Subsec. (d). Pub. L. 91–172, § 301(b)(8), added subsec. (d).
1966—Subsec. (a)(2)(A). Pub. L. 89–352 inserted “(14)(B) or (C),” after “(6),” in heading and in text.
1960—Subsec. (a)(2). Pub. L. 86–667, § 3(a), included organizations described in section 501(c)(17) within subpar. (A).
Subsec. (b). Pub. L. 86–667, § 3(b), inserted a reference to section 501(c)(17).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Effective Date of 1982 Amendment
Amendment by Pub. L. 97–248 applicable to taxable years beginning after Dec. 31, 1982, see section 201(e)(1) of Pub. L. 97–248, set out as a note under section 5 of this title.
Effective Date of 1978 Amendment
Amendment by section 301(b)(5)(A), (B) of Pub. L. 95–600 applicable to taxable years beginning after Dec. 31, 1978, see section 301(c) of Pub. L. 95–600, set out as a note under section 11 of this title.
Amendment by section 421(e)(3) of Pub. L. 95–600 applicable to taxable years beginning after Dec. 31, 1978, see section 421(g) of Pub. L. 95–600, set out as a note under section 5 of this title.
Effective Date of 1977 Amendment
Amendment by Pub. L. 95–30 applicable to taxable years beginning after Dec. 31, 1976, see section 106(a) of Pub. L. 95–30, set out as a note under section 1 of this title.
Effective Date of 1969 Amendment
Pub. L. 91–172, title I, § 121(g), Dec. 30, 1969, 83 Stat. 549, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The amendments made by this section [amending this section and sections 48, 501, 502, 503, 512 to 514, 681, 801, 810, 1443, 1504, and 7605 of this title] (other than by subsections (b)(3) and (e) [enacting sections 277 and 6050 of this title]) shall apply to taxable years beginning after December 31, 1969. The amendments made by subsection (b)(3) [enacting section 277 of this title] shall apply to taxable years beginning after December 31, 1970. The amendments made by subsection (e) [enacting section 6050 of this title] shall apply with respect to transfers of property after December 31, 1969. Where an organization makes a bargain purchase of property before October 9, 1969, which is subject to a mortgage which was placed on the property more than 5 years before the purchase, and the organization paid the seller a total amount no greater than the amount of the seller’s cost (including attorneys’ fees) directly related to the transfer of such property to the organization (but in any event no more than 10 percent of the value of the seller’s equity in the property), the indebtedness secured by such mortgage shall not be treated, notwithstanding the amendments made by subsection (d)(1) [amending section 514 of this title], as acquisition indebtedness for purposes of section 514(c)(1) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] during a period of 10 years following the date of the transaction.”
Amendment by section 301(b)(8) of Pub. L. 91–172 applicable to taxable years ending after Dec. 31, 1969, see section 301(c) of Pub. L. 91–172, set out as a note under section 5 of this title.
Amendment by section 803(d)(2) of Pub. L. 91–172 applicable to taxable years beginning after Dec. 31, 1970, see section 803(f) of Pub. L. 91–172, set out as a note under section 1 of this title.
Effective Date of 1966 Amendment
Pub. L. 89–352, § 3, Feb. 2, 1966, 80 Stat. 4, provided in part that: “The amendment made by section 2 [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Feb. 2, 1966].”
Effective Date of 1960 Amendment
Amendment by Pub. L. 86–667 applicable to taxable years beginning after Dec. 31, 1959, see section 6 of Pub. L. 86–667, set out as a note under section 501 of this title.