As non-profit entities, churches are subject to the IRS' Unrelated Business Income Tax (UBIT) provisions. For most organizations, an activity is an unrelated business (and subject to unrelated business income tax) if it meets three requirements:
There are, however, a number of modifications, exclusions and exceptions to the general definition of unrelated business income.
Download a guide with example situations from the General Council on Finance and Administration.
For more information, see the Internal Revenue Service website.