The Tax Law of Charitable Giving, 6th Edition

CHAPTER TWENTY-ONESpecial Events, Corporate Sponsorships, and Donor-Advised Funds

• § 21.1 IRS Audit Guidelines
  • (a) Regulatory History
  • (b) Special Emphasis Program
  • (c) Checksheet
  • (d) Audit Guidance
• § 21.2 Special Events
• § 21.3 Corporate Sponsorship Law
  • (a) Background
  • (b) Qualified Sponsorship Payments
• § 21.4 Donor-Advised Funds
  • (a) Import of Community Foundations
  • (b) Tax Reform Act of 1969
  • (c) Court Challenges
  • (d) Emergence of National Sponsoring Organizations
  • (e) Statutory Regime
  • (f) Department of Treasury Study
  • (g) Congressional Research Service Study
  • (h) Statistical Portrait
  • (i) Criticisms of Donor-Advised Funds
  • (j) Proposed Tax Regulations

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 ...