UBIT is income from a trade or business, that is regularly carried on and is not substantially related to the charitable, educational, or other purpose that is the basis of the organization's exemption.
Colleges and universities that are agencies or instrumentalities of any government or any political subdivision of a government, or that are owned or operated by a government or political subdivision of a government, are subject to the tax on unrelated business income.
IRS Sec 513 (c)
To help determine if an activity in your area is subject to Unrelated Business Income Tax please complete the UBIT questionnaire at the link below.
UBIT Questionnaire