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

That way, if an otherwise generous donor wants to give the local orchestra a race horse, the orchestra can determine whether it wishes to accept the gift and its potential UBIT consequences, or whether it should look the gift horse in the mouth and respectfully decline.

Footnotes:
1. An exception to this rule arises if the payment is made by an entity controlled by the exempt organization. That question and the operation of this rule are complex matters that are beyond the scope of this column.