Tax Planning and Compliance for Tax-Exempt Organizations, 2024 Cumulative Supplement, 6th Edition

CHAPTER 18IRS Filings, Procedures, and Policies

p. 801. Add at end of introduction:

IRS Publication 78 lists organizations that qualify to receive tax‐deductible contributions, as described in § 170(c) of the Internal Revenue Code. It is referred to as Pub. 78. It can be accessed on the Internet or a tax code and rulings service like CCH Standard Federal Tax Reporter (the black books). Individuals can claim an income tax deduction for donations to a charity of both cash and noncash items made to qualified organizations listed in Pub. 78. The permitted amount of the gift allowed as a tax deduction depends upon the type of charity and the donor's adjusted gross income (referred to as “AGI”). Based on the nature of property donated—cash versus stock, for example—the deduction is limited to either 30 percent or 50 percent (and up to 60 percent) of AGI as reported on the tax return, taking into account other itemized deductions and other income tax rules. Pub. 78 has guidelines spell out which types of organizations may receive tax‐deductible contributions and more. Examples of charities included are community trusts, religious organization like churches, United Ways, schools, hospitals, and the many more charitable entities plus some fraternal societies qualified for tax‐exempt status, among many others. Charitable giving is an important and sizable income tax deduction for some American taxpayers, so these guidelines are helpful for determining eligibility.

Pub. 78 is available ...