Author’s Note xi

About the Author xiii

Book Citations xv

PART ONE INTRODUCTION TO THE TAX LAW OF CHARITABLE GIVING 1

Chapter One Charitable Giving Law: Basic Concepts 3

1.4 Statistical Profile of Charitable Sector 3

Chapter Two The United States Tax System: An Overview 5

2.4 Concept of Adjusted Gross Income 5

2.6 Standard Deduction 5

2.7 Concept of Taxable Income 6

2.15 Taxation of Income 6

PART TWO BASICS OF CHARITABLE GIVING LAW 9

Chapter Three Fundamental Concepts 11

3.1 Meaning of Gift 11

3.3 Meaning of Charitable Organization 15

3.4 Public Charities and Private Foundations 15

3.6 Factors Affecting Income Tax Deductibility of Charitable Gifts 15

3.6A Charitable Organizations Listing Reliance Rules (New) 16

Chapter Four Gifts of Money and Property 19

4.3 Gifts of Long-Term Capital Gain Property in General 19

4.5 Certain Gifts of Capital Gain Property 19

4.6 Gifts of Property for Unrelated Use 19

PART THREE CHARITABLE GIVING IN GENERAL 21

Chapter FSiivxe Timing of Charitable Deductions 23

6.15 Gifts by S Corporations 23

Chapter Seven Percentage Limitations 25

7.4 Percentage Limitations: An Overview 25

7.19 Corporations’ Net Operating Loss Carryovers and Carrybacks 25

Chapter Eight Estate and Gift Tax Considerations 27

8.2 Federal Gift Tax 27

8.3 Federal Estate Tax 28

8.4 Unification of Taxes 29

8.4A Estate and Gift Tax Regime (New) 29

8.7 Remainder Interests 30

Chapter Nine Special Gift Situations 31

9.3 Inventory 31

9.5 Computer Technology or Equipment 32

9.7 Conservation Property 32

9.10 Retirement Plan Accounts 38

9.12 Donors’ Creations 38

9.15 Unreimbursed Expenses 38

9.17 Automobile Expenses 40

9.19 Bargain Sales 40

9.22 Contributions by Trusts 41

9.31 Public Policy Considerations 41

Chapter Ten Other Aspects of Deductible Giving 45

10.1 Valuation of Property 45

10.4 Conditional Gifts 46

10.9 Deductible Gifts to Noncharitable Organizations 48

10.14 Penalties 50

PART FOUR PLANNED GIVING 55

Chapter Eleven Valuation of Partial Interests 57

11.3 General Actuarial Valuations 57

Chapter Twelve Charitable Remainder Trusts 59

12.1 Definitions 59

12.2 Charitable Remainder Annuity Trust Rules 59

12.4 Issues 60

12.7 Early Terminations of Charitable Remainder Trusts 60

12.8 Taxation of Charitable Remainder Trusts 60

12.9 Mandatory Provisions 61

12.10 Private Foundation Rules 61

Chapter Thirteen Pooled Income Funds 63

13.5 Mandatory Provisions 63

13.6 Private Foundation Rules 63

13.8 Tax Status of Fund and Beneficiaries 63

Chapter FSioifxuttereeteennen Charitable Lead Trusts 65

16.2 Income Interest 65

16.5 Testamentary Use of Charitable Lead Trusts 65

PCAhRaTptFerIVSEeveINnTteEeRnNATIONAL CHARITABLE GIVING 67

Chapter Eighteen International Giving by Individuals during Lifetime 69

18.2 Background 69

18.5 Summary 69

PCAhRaTptSerIXTNwinAeenDtetMyeInNISTRATION OF CHARITABLE GIVING PROGRAMS 71

Chapter Twenty-One Substantiation and Appraisal Requirements 73

21.2 Substantiation Requirements for Gifts of Money 73

21.3 Substantiation Requirements for Gifts of $250 or More 73

21.4 Substantiation Requirements for Noncash Gifts 75

21.5 Appraisal Requirements 75

21.6 Appraisals and Penalties 78

21.8 Burden of Proof Rules 79

Chapter Twenty-Two Disclosure Requirements 81

22.2 Quid Pro Quo Contribution Rules 81

Chapter Twenty-Three Special Events, Corporate Sponsorships, and Donor-Advised Funds 83

23.4 Donor-Advised Funds 83

Chapter Twenty-Four Reporting Requirements 89

24.13 Split-Interest Trust Filing Requirements 89

PART SEVEN APPENDICES 91

Appendix E Inflation-Adjusted Insubstantiality Threshold—$50 Test 93

Appendix F Inflation-Adjusted Insubstantiality Threshold—$25 Test 95

Appendix G Inflation-Adjusted Low-Cost Article Definition 97

Appendix H Monthly Federal Interest Rates Used in Valuing Partial Interests (IRC § 7520) 99

Appendix I Deemed Rates of Return for Transfers to New Pooled Income Funds 107

TABLES

Cumulative Table of Cases 109

Cumulative Table of IRS Revenue Rulings and Revenue Procedures 121

Cumulative Table of IRS Private Determinations Cited in Text 125

Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and General Counsel Memoranda 129

Cumulative Table of Cases Discussed in Bruce R. Hopkins’ Nonprofit Counsel 141

Cumulative Table of IRS Revenue Rulings Discussed in Bruce R. Hopkins’ Nonprofit Counsel 145

Cumulative Table of Private Letter Rulings and Technical Advice Memoranda Discussed in Bruce R. Hopkins’ Nonprofit Counsel 147

Cumulative Index 149

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