Private Business Use Compliance in
Higher Education

(Retired) | Last updated June 19, 2017

Course Length

3h 20m

Last Updated

June 19, 2017

Private Business Use Compliance in
Higher Education

(Retired) | Last updated June 19, 2017


IRS regulations have made private business use (PBU) a concern across both public and 501(c)(3) campuses. In particular, the adoption of Schedule K reporting requirements to IRS Form 990 has emphasized the need for 501(c)(3) institutions to revisit IRS post- issuance tax compliance standards. For this reason, you need to quickly combine campus cooperation, proper documentation, and accurate calculation to ensure your institution is compliant.

Join us for a two-part online training series that will cover PBU requirements for public and 501(c)(3) institutions. Session 1, will cover appropriate steps in working with campus partners to communicate and gather PBU information. Session 2, will work more exclusively with gathered data to explore PBU calculation and remediation. Included in both sessions will be various communication steps, PBU survey samples, calculation principles and red flags, and best practices in remedial action.

Who should attend?

All higher education administrators involved in the issuance and ongoing management of tax-exempt debt will benefit from this online training series devoted to private business use classification and calculation principles.


Session 1: Managing the Prerequisite Components of Private Business Use Calculation

After participating in this online training, you will be able to prepare campus stakeholders in gathering critical components for private business use calculation.

  • Overview of Private Business Use Considerations
    • What the IRS is looking for (management and service contracts, research agreements)
    • Types of PBU (transfer of ownership, leasing and rental, management or service contracts, research, unrelated trade or business)
    • Differentiating considerations in PBU Compliance for both 501(c)(3) and public institutions
  • Generating Campus Buy-In for PBU
    • Campus-wide training
    • Pro-active PBU communication
  • Communication and Interpretation of PBU Documents
    • Sample questionnaires/surveys
    • Interpreting responses
    • Safe harbor exceptions (research agreements, management contracts, 50-day exclusions, unrelated business income issues, qualified building improvement exception)
  • Next Steps and Key Implementation Considerations
  • Concluding Thoughts and Questions


Session 2: Carrying Out Effective Private Business Use Calculation

After participating in this online training, you will be able to explore appropriate calculation principles in managing your institution’s private business use.

  • Private Business Use Calculation Overview
    • Square footage measurements
    • Relative time and relevant revenue
    • Fair market value
  • Centralizing Communication Documents
    • Key steps toward a centralized electronic database
    • Advantages/Risks of a centralized database
  • PBU Calculation Case Studies
    • Discussion of poorly constructed contracts (red flags in management/research contracts, for example)
    • Walk-through of building calculation that speaks to private business uses
  • Remedial Action for Tax-Exempt Bond Financed Facilities
    • Key requirements for remedial action
    • Best practice examples in PBU remediation
  • Next steps and key implementation considerations

Why is this event retired?

At AI we want to always ensure that the best and most current trainings are available to members, and we regularly review our trainings to ensure that is the case.