On the Record: All that Glitters Isn't Tax Exempt

In seeking or accepting a gift of a business interest, an exempt organization should consider whether the business is related to its purpose. (A donation of a working farm to an agricultural college might be sufficiently related.) If it is unrelated, organizations should gauge whether the income received from the business will be exempt under the many exceptions to the UBIT rules. The decision to accept an offered donation should be an informed one.