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SPECIAL EVENTS AND CORPORATE SPONSORSHIPSthe beginning of the second phase of the IRS’s Special Emphasis Program concerningsolicitation practices of charitable organizations. 9 This checksheetrequired an auditing IRS agent to review, in conjunction with examinations ofannual information returns (principally Form 990), the gift solicitation practicesof charitable organizations, including the solicitation of gifts when the donor isprovided a benefit, the use of special events, the conduct of bingo and othergames of chance, travel tours, thrift stores, and the receipt of nonmoney contributions.A special section of the checksheet inquired about the use of professionalfundraisers. Overall, the checksheet consisted of 82 questions, plusrequested financial information.One question asked the IRS agent to determine whether the charitable organizationis meeting the commensurate test. This is a standard, established by theIRS in 1964, 10 that looks to determine whether a charitable organization is carryingon charitable works that are commensurate in scope with its financialresources. The scope of the commensurate test in the context of charitable fundraisingwas unclear, 11 but presumably the agent was supposed to ascertainwhether the charitable organization was engaging in sufficient charitable activityin relation to its available resources, including gifts received through fundraisingcampaigns, in relation to the time and expense of fundraising. 12The checksheet focused on the nature of benefits, goals, or services providedto donors. These items included retail merchandise, new and donated merchandisereceived at auctions, tickets for games of chance, tuition at educational institutions,travel, tickets to athletic or other events, discounts, free subscriptions,and preferential seating at college or university athletic events. 13 The checksheetasked whether the charitable organization made any reference to the deductibilityof a payment in its solicitation or professional literature or in any thank-youletter, receipt ticket, or other written receipt to donors.As to contributions of property, the IRS wanted a list of all nonmoney gifts,the fair market value of which is in excess of $500, during the year of examination.The checksheet inquired about the individual who had valued the giftproperty, whether a proper receipt had been provided, whether there was anagreement between the donor and the donee as to disposition of the property,and whether the requisite forms had been properly completed and filed. 149 This checksheet appears as Appendix C in Hopkins, The Law of Fund-Raising, 2d ed. (John Wiley & Sons,1996).10 Rev. Rul. 64-182, 1964-1 C.B. (Part 1) 186.11 The IRS initially deployed the commensurate test in a court case, although that argument was abandoned duringthe course of the litigation and the test was not used by the court. United Cancer Council, Inc. v. Commissioner,109 T.C. 326 (1997), rev’d & remanded, 165 F.3d 1173 (7th Cir. 1999).12 The commensurate test, as applied in the charitable fundraising context, is the subject of Fundraising § 5.15.The commensurate test, as applied in the exempt organizations context generally, is the subject of Tax-ExemptOrganizations § 4.7.13 As to this latter item, see § 22.1, text accompanied by note 9.14 Other aspects of this checksheet, which inquire into fundraising practices, are the subject of Fundraising§ 6.1, n.9. 620