Contents

AA P P E N D I X ASources of the LawThe law as described in this book is derived from many sources. For those notfamiliar with these matters and wishing to understand what “the law” regardingcharitable organizations and the tax law of charitable giving is, the followingexplanation should be of assistance.FEDERAL LAWAt the federal (national) level in the United States, there are three branches ofgovernment, as provided for in the U.S. Constitution. Article 1 of the Constitutionestablished the U.S. Congress as a bicameral legislature, consisting of the Houseof Representatives and the Senate. Article II of the Constitution established thepresidency. Article III of the Constitution established the federal court system.CongressThe legal structure underlying the federal law for nonprofit organizations in theUnited States has been created by Congress. Most of this law is manifested in thetax law and thus appears in the Internal Revenue Code (which is officially codifiedin Title 26 of the United States Code and referenced throughout the book asthe “IRC” (see § 1.2, note 6)). Other laws written by Congress that can affectcharitable organizations and giving to them include the postal, employee benefits,antitrust, labor, and securities laws.Tax laws for the United States must originate in the House of Representatives(U.S. Constitution, art. I, § 7). Consequently, most of the nation’s tax lawsare initially written by the members and staff of the House Committee on Waysand Means. Frequently, these laws are generated by work done at the subcommitteelevel, usually the Subcommittee on Oversight or the Subcommittee onSelect Revenue Measures.Committee work in this area within the Senate is undertaken by the Committeeon Finance. The Joint Committee on Taxation, consisting of membersfrom both the House of Representatives and the Senate, also provides assistancein this regard. Nearly all of this legislation is finalized by a House-Senate conferencecommittee, consisting of senior members of the House Ways and MeansCommittee and the Senate Finance Committee.A considerable amount of the federal tax law for charitable organizations andcharitable giving is found in the legislative history of these statutory laws. Most of 641