Contents

C H A P T E R T H R E E3Fundamental Concepts§ 3.1 Meaning of Gift 57(a) General Rules 58(b) Quid Pro Quo Situations 65(c) Incidental Benefits 73(d) Absence of ValueTransferred 75(e) Donor Recognition 78(f) RecommendatoryRights 79(g) Anticipatory IncomeAssignments 82(h) Credit Card RebatePlans 87(i) Dividends Paid toCharities asStockholders 88(j) Requirement ofCompletion 89(k) Employee HardshipPrograms 91(l) Mandatory Payments 92§ 3.2 Meaning of Donor 93§ 3.3 Meaning of CharitableOrganization 94(a) Introduction 94(b) CharitableOrganizations—Criteria 96§ 3.4 Public Charities andPrivate Foundations 103(a) Public CharitableOrganizations 104(b) Other OrganizationsThat Are Not Treatedas Private Foundations 114(c) Private Foundations 114§ 3.5 Unrelated Business Rules 115(a) Introduction 115(b) Trade or BusinessDefined 116(c) Regularly Carried On 117(d) Concept of UnrelatedBusiness 117(e) Unrelated BusinessTaxable Income 118(f) Exempted Activities 118(g) Exempted Income 120§ 3.6 Factors Affecting Income TaxDeductibility ofCharitable Gifts 120§ 3.7 Grantor Trust Rules 122§ 3.1 MEANING OF GIFTThe basic federal law on the subject of the tax aspects of charitable giving is containedin the Internal Revenue Code and in the interpretations of that body oflaw found in court opinions, Treasury Department and IRS regulations, and IRSpublic rulings. (Technically not law, pronouncements by the IRS on this subjectmay be found in private letter rulings, technical advice memoranda, and chief 57