The Tax Law of Charitable Giving is the leading guide to the law, rules, and regulations governing charitable giving. Author Bruce R. Hopkins is the most respected authority in the field; in this book, he provides a comprehensive update on the latest changes to the law, new Treasury Department regulations, and much more to help lawyers, managers, and development directors in tax–exempt organizations stay up–to–date on all regulations pertaining to charitable gifts. The companion website provides additional tables, appendices, IRS guidelines, and other useful documents to help nonprofits make fully informed decisions about their fund–development programs.
As quickly as tax law evolves, it remains the nonprofit′s responsibility to stay up–to–date and compliant with all relevant regulations. This book provides a definitive reference for the latest changes, new laws, and upcoming legislation to provide an accessible one–stop reference.
- Examine the latest changes to the laws surrounding charitable giving
- Learn how the new healthcare tax affects pooled income funds
- Understand the Treasury Department′s new regulations for reporting, appraisal, and more
- Access reference tables, IRS guidelines, and other useful documents
Charitable gifts are the cornerstone of the nonprofit organization′s support, and American taxpayers give more than any other group worldwide. The rules surrounding these gifts are complex, but compliance is critical to the health of the organization. The Tax Law of Charitable Giving provides an authoritative reference for all aspects of the law, with the most up–to–date information available anywhere.
Table of Contents
Preface ix
About the Author xi
Book Citations xiii
PART ONE INTRODUCTION TO THE TAX LAW of CHARITABLE GIVING 1
Chapter One Charitable Giving Law: Basic Concepts 3
§ 1.3 Principles of Charitable Organizations Law Philosophy 3
∗§ 1.4 Statistical Profile of Charitable Sector 3
Chapter Two The United States Tax System: An Overview 5
§ 2.5 Deductions 5
§ 2.6 Standard Deduction 6
§ 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
§ 3.2 Meaning of Donor 13
∗§ 3.4 Public Charities and Private Foundations 13
§ 3.6 Factors Affecting Income Tax Deductibility of Charitable Gifts 16
Chapter Four Gifts of Money and Property 17
§ 4.3 Gifts of Long–Term Capital Gain Property in General 17
PART THREE CHARITABLE GIVING IN GENERAL 19
Chapter Six Timing of Charitable Deductions 21
∗§ 6.13A Gifts of Easements (New) 21
§ 6.15 Gifts by S Corporations 22
Chapter Seven Percentage Limitations 23
§ 7.12A Qualified Conservation Contributions 23
∗§ 7.12B Conservation Gifts by Farmers and Ranchers 24
Chapter Eight Estate and Gift Tax Considerations 27
§ 8.2 Federal Gift Tax 27
Chapter Nine Special Gift Situations 29
§ 9.3 Inventory 29
∗§ 9.7 Conservation Property 30
§ 9.10 Retirement Plan Accounts 39
§ 9.19 Bargain Sales 39
∗§ 9.22 Contributions by Trusts 40
§ 9.22A Contributions by Estates 41
Chapter Ten Other Aspects of Deductible Giving 45
∗§ 10.1 Valuation of Property 45
§ 10.4 Conditional Gifts 47
§ 10.7 Interrelationship with Business Expense Deduction 47
§ 10.14 Penalties 48
∗§ 10.15 Transactions of Interest 50
PART FOUR PLANNED GIVING 53
Chapter Twelve Charitable Remainder Trusts 55
∗§ 12.1 Definitions 55
§ 12.2 Charitable Remainder Annuity Trust Rules 55
§ 12.3 Charitable Remainder Unitrust Rules 58
§ 12.4 Issues 58
∗§ 12.10 Private Foundation Rules 59
§ 12.12 Calculation of Charitable Deduction 59
§ 12.13 Regular Termination of Charitable Remainder Trusts 61
Chapter Thirteen Pooled Income Funds 65
§ 13.7 Pass–Through of Depreciation 65
Chapter Sixteen Charitable Lead Trusts 67
§ 16.7 Private Foundation Rules 67
PART FIVE INTERNATIONAL CHARITABLE GIVING 69
Chapter Eighteen International Giving by Individuals during Lifetime 71
PART SIX ADMINISTRATION OF CHARITABLE GIVING PROGRAMS 73
Chapter Twenty–One Substantiation and Appraisal Requirements 75
∗§ 21.3 Substantiation Requirements for Gifts of $250 or More 75
∗§ 21.4 Substantiation Requirements for Noncash Gifts 82
∗§ 21.4A Substantiation Requirements and Donor–Advised Funds 84
∗§ 21.5 Appraisal Requirements 84
∗§ 21.7 Appraisals of Clothing and Household Items 85
§ 21.8 Burden of Proof Rules 85
Chapter Twenty–Three Special Events, Corporate Sponsorships, and Donor–Advised Funds 87
§ 23.4 Donor–Advised Funds 87
PART SEVEN APPENDICES 89
Appendix H Monthly Federal Interest Rates Used in Valuing Partial Interests (IRC § 7520) 91
Appendix I Deemed Rates of Return for Transfers to New Pooled Income Funds 99
TABLES 101
Cumulative Table of Cases 103
Cumulative Table of IRS Revenue Rulings and Revenue Procedures 115
Cumulative Table of IRS Private Determinations Cited in Text 119
Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and General Counsel Memoranda 125
Cumulative Table of Cases Discussed in Bruce R. Hopkins Nonprofit Counsel 135
Cumulative Table of IRS Revenue Rulings Discussed in Bruce R. Hopkins Nonprofit Counsel 141
Cumulative Table of Private Letter Rulings and Technical Advice Memoranda Discussed in Bruce R. Hopkins Nonprofit Counsel 143
Table of Tax Reform Legislation 145
About the Online Resources 151
Cumulative Index 153
