Description
Book SynopsisTable of ContentsPreface xv
Book Citations xix
Part One Introduction to the Tax Law of Charitable Giving
1 Charitable Giving Law: Basic Concepts 3
§ 1.1 Introduction to Charitable Contribution Deduction 3
§ 1.2 Defining Tax-Exempt Organizations 5
§ 1.3 Charitable Organizations Law Philosophy 8
§ 1.4 Statistical Profile of Charitable Sector 23
§ 1.5 History of Charitable Contribution Deduction 29
§ 1.6 Charitable Contribution Deduction Reform Proposals 32
2 Fundamental Concepts 35
§ 2.1 Definition of Gift 36
§ 2.2 Definition of Donor 83
§ 2.3 Definition of Charitable Organization 84
§ 2.4 Public Charities and Private Foundations 96
§ 2.5 Unrelated Business Law 113
§ 2.6 Factors Affecting Income Tax Deductibility of Charitable Gifts 121
§ 2.7 Charitable Organizations Listing Reliance Rules 122
§ 2.8 Grantor Trust Law 126
3 Contributions of Money and Property 129
§ 3.1 Contributions of Money 129
§ 3.2 Contributions of Property in General 130
§ 3.3 Contributions of Long-Term Capital Gain Property in General 132
§ 3.4 Contributions of Ordinary Income Property 132
§ 3.5 Certain Contributions of Capital Gain Property 136
§ 3.6 Contributions of Property for Unrelated Use 139
§ 3.7 Step Transaction Doctrine 142
§ 3.8 Charitable Pledges 148
Part Two Charitable Giving in General
4 Timing of Charitable Deductions 153
§ 4.1 Overview of Law 154
§ 4.2 Contributions of Money in General 155
§ 4.3 Contributions of Money by Check 155
§ 4.4 Contributions of Money by Credit Card 158
§ 4.5 Contributions of Money by Telephone 159
§ 4.6 Contributions of Securities 159
§ 4.7 Contributions of Copyright Interest 162
§ 4.8 Contributions by Means of Notes 163
§ 4.9 Contributions by Letters of Credit 163
§ 4.10 Contributions of Property Subject to Option 164
§ 4.11 Contributions of Stock Options 165
§ 4.12 Contributions of Credit Card Rebates 167
§ 4.13 Contributions of Tangible Personal Property 167
§ 4.14 Contributions of Real Property 168
§ 4.15 Contributions of Easements 168
§ 4.16 Contributions by C Corporations 169
§ 4.17 Contributions by S Corporations 170
§ 4.18 Contributions by Partnerships 171
§ 4.19 Contributions by Means of the Internet 173
5 Limitations on Annual Deductibility 175
§ 5.1 Overview of Law 176
§ 5.2 Individuals’ Contribution Base 179
§ 5.3 Corporations’ Taxable Income 179
§ 5.4 Percentage Limitations: An Overview 180
§ 5.5 Sixty Percent Limitation 182
§ 5.6 Fifty Percent Limitation 183
§ 5.7 Thirty Percent Limitation for Gifts of Certain Property 186
§ 5.8 Electable 50 Percent Limitation 189
§ 5.9 General 30 Percent Limitation 193
§ 5.10 Interplay of 50 Percent/Special 30 Percent Limitations 194
§ 5.11 Interplay of 50 Percent/General 30 Percent Limitations 194
§ 5.12 Interplay of Special 30 Percent/General 30 Percent Limitations 195
§ 5.13 Twenty Percent Limitation 195
§ 5.14 Qualified Conservation Contribution Law 196
§ 5.15 Conservation Gifts by Farmers and Ranchers 196
§ 5.16 Gifts for the Use of Charity 198
§ 5.17 Blending Percentage Limitations 199
§ 5.18 Rules for Spouses 200
§ 5.19 Information Requirements 202
§ 5.20 Percentage Limitation for Corporations 202
6 Estate and Gift Law 205
§ 6.1 Overview of Law 205
§ 6.2 Federal Gift Tax 207
§ 6.3 Federal Estate Tax 218
§ 6.4 Unification of Taxes 234
§ 6.5 Remainder Interests 234
§ 6.6 Ascertainability of Value of Charitable Interest 244
7 Unique Charitable Contribution Laws 249
§ 7.1 Works of Art 250
§ 7.2 Gems 254
§ 7.3 Inventory 256
§ 7.4 Scientific Research Property 264
§ 7.5 License to Use Patent 265
§ 7.6 Easements and Other Conservation Property 267
§ 7.7 S Corporation Stock 292
§ 7.8 Section 306 Stock 300
§ 7.9 Retirement Plan Accounts 302
§ 7.10 Commodity Futures Contracts 309
§ 7.11 Donors’ Creations 311
§ 7.12 Charity Auctions 312
§ 7.13 Services 319
§ 7.14 Unreimbursed Expenses 321
§ 7.15 Limitation on Deduction for Expenses Due to Pleasure 327
§ 7.16 Automobile Expenses 331
§ 7.17 Use of Property 331
§ 7.18 Bargain Sales 332
§ 7.19 Property Subject to Debt 338
§ 7.20 Future Interests in Tangible Personal Property 341
§ 7.21 Contributions by Trusts 342
§ 7.22 Taxidermy 351
§ 7.23 Clothing and Household Items 352
§ 7.24 Vehicles 352
§ 7.25 Intellectual Property 359
§ 7.26 Foreign Tax Credit 363
§ 7.27 Subsistence Whaling Expenses 364
§ 7.28 Virtual Currency Transactions 365
8 Additional Aspects of Deductible Giving 367
§ 8.1 Contributions by Means of an Agent 368
§ 8.2 Contributions for the Use of Charity 369
§ 8.3 Conditional Contributions 371
§ 8.4 Earmarking of Contributions for Individuals 377
§ 8.5 Interrelationship with Business Expense Deduction 380
§ 8.6 Denial of Deduction for Lobbying Activities 382
§ 8.7 Deductible Contributions to Noncharitable Organizations 383
§ 8.8 Reallocation of Deductions 388
§ 8.9 Funding of Terrorism 388
§ 8.10 Statute of Limitations 389
§ 8.11 Concept of Trust Income 389
§ 8.12 Unrelated Business Income Charitable Deduction 393
§ 8.13 Charitable Family Limited Partnerships 394
§ 8.14 Abusive Tax Transactions 396
§ 8.15 Public Policy Considerations 408
Part Three Planned Giving
9 Planned Giving and Valuation 417
§ 9.1 Planned Giving Fundamentals 417
§ 9.2 Partial Interests Law 420
§ 9.3 Overview of Valuation Law 423
§ 9.4 Standard Actuarial Factors 424
§ 9.5 General Actuarial Valuations 426
§ 9.6 Nonstandard Actuarial Factors 429
§ 9.7 Securities Laws 432
10 Charitable Remainder Trusts 435
§ 10.1 Definitions 437
§ 10.2 Charitable Remainder Annuity Trust Law 448
§ 10.3 Charitable Remainder Unitrust Law 462
§ 10.4 Issues 479
§ 10.5 Tax Treatment of Distributions 492
§ 10.6 Division of Charitable Remainder Trusts 499
§ 10.7 Basis in Disposition of Term Interest 503
§ 10.8 Taxation of Charitable Remainder Trusts 505
§ 10.9 Mandatory Provisions 507
§ 10.10 Private Foundation Law 508
§ 10.11 University Endowment Investment Sharing 510
§ 10.12 Charitable Remainder Trusts as Partners or Shareholders in REITs 512
§ 10.13 Wealth Replacement Trusts 513
§ 10.14 Calculation of Charitable Contribution Deduction 513
§ 10.15 Merger of Charitable Remainder Trusts 519
§ 10.16 Early Terminations of Charitable Remainder Trusts 519
§ 10.17 Regular Termination of Charitable Remainder Trusts 521
11 Pooled Income Funds 525
§ 11.1 Definitions 526
§ 11.2 Qualifying Pooled Income Funds 527
§ 11.3 Allocation of Income 533
§ 11.4 Recognition of Gain or Loss on Transfers 534
§ 11.5 Mandatory Provisions 535
§ 11.6 Private Foundation Law 536
§ 11.7 Pass-Through of Depreciation 537
§ 11.8 Tax Status of Funds and Beneficiaries 538
§ 11.9 Multiorganization Pooled Income Funds 540
§ 11.10 Comparison with Charitable Remainder Trusts 543
§ 11.11 Charitable Contribution Deduction 544
12 Charitable Gift Annuities 547
§ 12.1 Contract as Vehicle Form 547
§ 12.2 Tax Treatment to Donor 548
§ 12.3 Deferred Payment Gift Annuities 549
§ 12.4 Estate and Gift Tax Consequences 550
§ 12.5 Unrelated Business Income Implications 550
§ 12.6 Unrelated Debt-Financed Income Implications 551
§ 12.7 Contrast with Other Planned Gift Methods 552
§ 12.8 Antitrust Laws 553
§ 12.9 Securities Laws 554
§ 12.10 Charitable Contribution Deduction 554
13 Other Types of Deductible Remainder Interests 557
§ 13.1 Overview of Law 557
§ 13.2 Qualifying Partial Interests 558
§ 13.3 Remainder Interests in Personal Residences or Farms 558
§ 13.4 Undivided Portions of Entire Interests in Property 562
14 Charitable Lead Trusts 571
§ 14.1 Overview of Law 571
§ 14.2 Income Interests 572
§ 14.3 Tax Treatment of Charitable Lead Trusts 574
§ 14.4 Testamentary Use of Charitable Lead Trusts 576
§ 14.5 Percentage Limitation Law 578
§ 14.6 Private Foundation Law 578
§ 14.7 Anti-Abuse Rule Concerning Income Interests 580
§ 14.8 Charitable Income Trusts 582
§ 14.9 Comparison with Charitable Remainder Trusts 583
§ 14.10 Valuing Charitable Contribution Deduction 583
§ 14.11 Charitable Contribution Deduction 584
15 Contributions of and Using Life Insurance 587
§ 15.1 Introduction 587
§ 15.2 Life Insurance Concepts 588
§ 15.3 Charitable Giving and Insurance 591
§ 15.4 Insurable Interest 596
§ 15.5 Unrelated Debt-Financed Income Law 599
§ 15.6 Charitable Split-Dollar Insurance Plans 600
§ 15.7 Insurance Contract Reporting Requirements 607
Part Four International Charitable Giving
16 International Giving by Individuals During Lifetime 611
§ 16.1 Introduction 611
§ 16.2 Overview of Law 612
§ 16.3 Earmarking and Conduit Restrictions 615
§ 16.4 Control over Foreign Donees 619
§ 16.5 Summary 622
§ 16.6 Income Tax Treaties 623
17 International Giving by Individuals by Means of Estates 625
§ 17.1 Overview of Law 625
§ 17.2 Estate Tax Law 626
§ 17.3 Gift Tax Law 632
§ 17.4 Charitable Giving by Noncitizen Nonresidents 632
18 International Giving by Corporations 635
§ 18.1 Contributions to U.S. Charities for Foreign Use 635
§ 18.2 Contributions of Money from Foreign Affiliate of U.S. Parent to Foreign Charities 636
§ 18.3 Contributions of Goods or Services to Benefit Foreign Charities 637
§ 18.4 Grants of Funds from U.S.-Related Foundation to Foreign Charities 638
Part Five Administration of Charitable Giving Programs
19 Substantiation and Appraisal Law 651
§ 19.1 Introduction 652
§ 19.2 Substantiation Law for Charitable Monetary Contributions 653
§ 19.3 Substantiation Law for Charitable Contributions of $250 or More 654
§ 19.4 Substantiation Law for Noncash Charitable Contributions 669
§ 19.5 Substantiation Law for Conservation Contributions 675
§ 19.6 Substantiation Law for Contributions of Motor Vehicles, Boats, and Airplanes 675
§ 19.7 Substantiation Law for Contributions to Donor-Advised Funds 676
§ 19.8 Appraisal Law 676
§ 19.9 Appraisals of Clothing and Household Items 687
§ 19.10 Recordkeeping Law 688
20 Disclosure Law 693
§ 20.1 Disclosure by Charitable Organizations in General 693
§ 20.2 Quid Pro Quo Contribution Law 698
§ 20.3 Disclosure by Noncharitable Organizations 702
21 Special Events, Corporate Sponsorships, and Donor-Advised Funds 707
§ 21.1 IRS Audit Guidelines 708
§ 21.2 Special Events 712
§ 21.3 Corporate Sponsorship Law 714
§ 21.4 Donor-Advised Funds 717
22 Reporting Law 739
§ 22.1 Contribution Reporting by Individuals 739
§ 22.2 Contribution Reporting by C Corporations 740
§ 22.3 Contribution Reporting by S Corporations 740
§ 22.4 Contribution Reporting by Partnerships 740
§ 22.5 Contribution Reporting by Donees in General 741
§ 22.6 Contribution Reporting in Unrelated Business Context 746
§ 22.7 Noncash Contributions Reporting Law in General 749
§ 22.8 Contributions of Vehicles Reporting Law 765
§ 22.9 Contributions of Intellectual Property Reporting Law 767
§ 22.10 Dispositions of Contributed Property Reporting Law 768
§ 22.11 Personal Benefit Contract Reporting Law 771
§ 22.12 Split-Interest Trust Reporting Law 771
23 Valuation Principles and Various Penalties 773
§ 23.1 Valuation of Property—General Principles 773
§ 23.2 Valuation of Works of Art 779
§ 23.3 Valuation of Securities 781
§ 23.4 Valuation of Other Types of Property 784
§ 23.5 Other Court Valuation Cases 793
§ 23.6 Federal Tax Penalties 803
§ 23.7 Burden of Proof Law 815
§ 23.8 Burden of Production and Procedural Law 817
24 State Fundraising Law 819
§ 24.1 State Regulation in General 819
§ 24.2 Historical Perspective 820
§ 24.3 States’ Police Power 822
§ 24.4 Basic Definitions 823
§ 24.5 Registration Law 824
§ 24.6 Reporting Law 824
§ 24.7 Exemptions from Regulation 825
§ 24.8 Fundraising Cost Limitations 826
§ 24.9 Prohibited Acts 827
§ 24.10 Contract Law 828
§ 24.11 Disclosure Law 829
About the Author 831
About the Online Resources 833
Index 835
