Charitable Giving Information

Almost as long as the U.S. Constitution has permitted the taxation of income, Congress has provided some form of relief for taxpayers who make charitable contributions. An often-stated reason for such tax relief is to encourage the provision of social services by private charities. While the concept of providing a tax deduction for charitable contributions is simple, the rules are complex; applying these rules on a day-to-day basis thus presents a number of challenges. The Charitable Giving Answer Book meets these challenges by tackling a host of both common and hot and emerging issues. It provides quick answers to tough planning and compliance questions that frequently challenge practitioners whether they are estate planners, consultants to philanthropists, or those who manage and consult charitable organizations. The practitioner-preferred format in the Answer Book saves time for the busy professional. To help facilitate fast and effective research on complicated questions that need extra attention, citations are included to federal statutes, regulations, rulings, and cases that control whether a particular charitable contribution is deductible, nondeductible, or only partially deductible. Highlights of the 2009 edition include: * Updated information regarding legislation contained in the Pension Protection Act of 2006 (PPA) and Katrina Emergency Tax Relief Act (KETRA) * How the IRS is treating political activity within charitable organizations * A discussion regarding participation in prohibited tax shelter transactions and required disclosures * Temporarily suspended charitable deduction limitations (§1400S) * Updated model trust forms for Charitable Remainder Trusts * What is a charitable contribution? * What are the various limitations on deductibility of charitable contributions, both for individual and corporate taxpayers? * How are contributions of different types of property treated? * Is a taxpayer entitled to a deduction if he or she receives a benefit in exchange for a payment to charity? * How must a charitable trust be structured to ensure that the donor (grantor) is entitled to a deduction? * How can a donor obtain a tax deduction for making a contribution of a conservation easement? * * * Includes a discussion of case law pertaining to easements * Can a donor make a contribution and still retain control over how the funds will ultimately be used? * Updated information regarding supporting organizations and donor-advised funds * How must charitable contributions be documented? Includes a discussion of newly enacted substantiation requirements

About the Author

Catherine W. Wilkinson is a certified public accountant, practicing in the tax group of the Washington, D.C.-based law firm of Steptoe & Johnson LLP. Ms. Wilkinson received her MBA in accounting and taxation from Indiana University. Ms. Wilkinson provides tax planning and advice to tax-exempt organizations with respect to qualification and state regulatory issues, unrelated business income and participation in partnerships and business ventures, executive compensation, lobbying and political activities. She also advises charitable organizations in the development and operation of fundraising programs; establishing and maintaining planned giving programs, including charitable gift annuities, pooled income funds, and use of split-interest trusts, private foundations and other deferred giving arrangements; and record keeping and reporting in the context of contributions, capital campaigns, direct mail solicitations, planned giving and special events. She is a contributing author of the chapter on Section 501(c)(3) Organizations in the 403(b) Answer Book, 6th Edition, published by Aspen Publishers. Ms. Wilkinson advises tax-exempt organizations, with respect to executive compensation and benefits. This advice includes use of incentive and performance-based compensation arrangements and deferred compensation; stock options, other forms of equity compensation and phantom stock plans; and compensation paid in connection with a change in control. In addition, Ms. Wilkinson represents tax-exempt organizations and their employees in complex federal and state tax audits and investigations. Jean M. Baxley is a tax attorney in the Washington, D.C. office of Steptoe & Johnson LLP. She received her LL.M. in Taxation from Georgetown University Law Center in 1997. Ms. Baxley counsels corporate clients with respect to federal tax planning and tax controversy matters, with a particular focus on federal income tax audit and controversy work. She assists clients throughout the audit process, helping clients respond to IRS information and document requests; defends against IRS challenges, including challenges to tax-advantaged transactions; rebuts the IRS s assertion of penalties; and pursues tax refund litigation. Ms. Baxley also renders tax planning advice, provides tax opinions, and prepares letter ruling requests. Ms. Baxley’s primary areas of experience include insurance company and insurance product taxation; the taxation of financial institutions and products, tax-advantaged transactions and economic substance issues, accuracy-related penalties and defenses to penalties, certain disclosure and reporting requirements (e.g., the disclosure rules of section 6011 and the list maintenance rules of section 6112), and privilege and work product issues.

This authoritative guide presents in-depth discussions on such hot topics as the timing of charitable deductions, estate and gift tax considerations, special property rules, and planned giving. Packed with practical tips and hard-to-find advice, Charitable Giving Law Made Easy sheds light on complex legal issues concerning charitable giving with plain-language explanations of laws and regulations for non-legal professionals.

From the Inside Flap

Comprehending the legal implications of the making of charitable contributions can be confounding as well as financially detrimental if the rules are not followed. Written for everyone from nonprofit novices to sophisticated directors of established organizations, Charitable Giving Law Made Easy assists non-lawyers through the nonprofit, tax-exempt organizations, charitable giving maze.

Author Bruce Hopkins—a leading authority on tax-exempt organizations— offers plain-language explanations of the definition of a charitable gift, the percentage limitations, rules as to gifts of property, planned giving, and the substantiation and appraisal requirements that apply to nonprofit organizations.

Several recent developments have drastically affected charitable giving law, including a congressional enactment of major charitable giving legislation, ambitious regulations and rulings projects by the IRS, and court contributions to the law. Charitable Giving Law Made Easy addresses these issues with the insight of the author’s world-class experience.

Covering everything you need to know to navigate the complex web of charitable giving law issues, this expert guide explores:

• Contributions of money and property
• Deduction percentage limitations
• Unique charitable giving situations
• Planned giving techniques
• Administration of charitable giving programs
• And much more!

Written by a lawyer for non-lawyers, Charitable Giving Law Made Easy demystifies the rules and regulations surrounding gifts to charitable organizations and provides legal novices with a useful understanding of charitable giving law.

The Tax Law of Charitable Giving: 2009 Cumulative Supplement – The Tax Law of Charitable Giving, Third Edition is completely revised, revamped, and updated. Written in plain English, it can help lawyers, managers, and development directors in tax-exempt organizations make sure they are up to date on all current regulations pertaining to charitable gifts. Detailed documentations and citations are provided. As well, references to regulations, rulings, cases, and tax literature are included. Professionals can ensure they are well prepared to make decisions about their organization s fund-development program.

About the Author
Bruce R. Hopkins is a senior partner in the law firm of Polsinelli Shalton Flanigan Suelthaus PC, practicing in the firm’s Kansas City, Missouri, and Washington, D.C., offices. He specializes in the field of charitable giving. His practice ranges over the entirety of tax matters involving charitable giving (including planned giving) and tax-exempt organizations, with emphasis on the formation of nonprofit organizations, acquisition of recognition of tax-exempt status for them, the private inurement and private benefit doctrines, the intermediate sanctions rules, legislative and political campaign activities issues, public charity and private foundation rules, unrelated business planning, use of exempt and for-profit subsidiaries, joint venture planning, tax shelter involvement review of annual information returns, Internet communications developments, and fundraising law issues. Mr. Hopkins served as chair of the Committee on Exempt Organizations, Tax Section, American Bar Association; chair, Section of Taxation, National Association of College and University Attorneys; and president, Planned Giving Study Group of Greater Washington, D.C. Mr. Hopkins is the series editor of Wiley’s Nonprofit Law, Finance, and Management Series. In addition to The Tax Law of Charitable Giving, Third Edition, he is the author of Charitable Giving Law  Easy; IRS Audits of Tax-Exempt Organizations: Policies, Practices, and Procedures; The Law of Tax-Exempt Organizations, Ninth Edition; The Planning Guide for the Law of Tax-Exempt Organizations Strategies and Commentaries; The Law of Fundraising, Third Edition; The Tax Law of Associations; The Tax Law of Unrelated Business for Nonprofit Organizations; The Nonprofits’ Guide to Internet Communications Law; The Law of Intermediate Sanctions: A Guide for Nonprofits; Starting and Managing a Nonprofit Organization: A Legal Guide, Fourth Edition; Nonprofit Law Made Easy; 650 Essential Nonprofit Law Questions Answered; The First Legal Answer Book for Fund-Raisers; The Second Legal Answer Book for Fund-Raisers; The Legal Answer Book for Nonprofit Organizations; The Second Legal Answer Book for Nonprofit Organizations; and The Nonprofit Law Dictionary; and is the co-author, with Jody Blazek, of Private Foundations: Tax Law and Compliance, Second Edition; also with Ms. Blazek, The Legal Answer Book for Private Foundations; and with Thomas K. Hyatt, The Law of Tax-Exempt Healthcare Organizations, Second Edition. He also writes Bruce R. Hopkins’ Nonprofit Counsel, a monthly newsletter published by John Wiley & Sons.

Mr. Hopkins earned his J.D. and L.L.M. degrees at the George Washington University and his B.A. at the University of Michigan. He is a member of the bars of the District of Columbia and the state of Missouri. Mr. Hopkins the 2007 Outstanding Nonprofit Lawyer Award (Vanguard Lifetime Achievement Award) from the American Bar Association, Section of Business Law, Committee on Nonprofit Corporations. He is listed in The Best Lawyers in America, Nonprofit Organizations/Charities Law, 2007–2009.