The Tax Law of Charitable Giving, 5th Edition

Chapter Twenty - ThreeSpecial Events, Corporate Sponsorships, and Donor-Advised Funds

1. § 23.1 IRS Audit Guidelines
   1. (a) Regulatory History
   2. (b) Special Emphasis Program
   3. (c) Checksheet
   4. (d) Audit Guidance
2. § 23.2 Special Events
3. § 23.3 Corporate Sponsorship Rules
   1. (a) Background
   2. (b) Qualified Sponsorship Payments
4. § 23.4 Donor-Advised Funds

As is discussed throughout the book, a payment to a charitable organization is not always deductible as a charitable gift for federal income tax purposes.¹ Payments that can fall into these categories of questionable transfers are:

• A payment when the donor is provided some tangible item of property in exchange for the contribution, so that only a portion of the transaction is a charitable gift
• A payment when the donor is provided some benefit, service, or privilege in exchange for the contribution, so that only a portion of the transaction is a charitable gift
• A payment when the donor is provided with an item of property, or a benefit, service, or privilege to the extent that none of the payment constitutes a charitable gift

Years ago, the IRS launched a Special Emphasis Program to disseminate information about the law on these points and to provide audit guidance to its agents in the field. Two types of fundraising practices have dominated the development of the law in this area: special events and donor recognition programs. This body of law addresses the question of whether payments to a charitable organization are, in whole or in part, ...