Contents

FUNDAMENTAL CONCEPTS• A domestic fraternal society, order, or association, operating under thelodge system, but only if the contribution is to be used exclusively for religious,charitable, scientific, literary, or educational purposes, or for theprevention of cruelty to children or animals 267• A cemetery company owned and operated exclusively for the benefit ofits members, or a corporation chartered solely for burial purposes as acemetery corporation and not permitted by its charter to engage in anybusiness not necessarily incident to that purpose, if the company or corporationis not operated for profit and no part of its net earnings inures tothe benefit of any private shareholder or individual 268In summary, organizations that are tax-exempt pursuant to federal tax lawgenerally receive that exemption pursuant to an exemption provision, 269 by virtueof a particular listing. 270 Organizations that are charitable donees for federalincome tax law purposes have that status under another provision, 271 by virtueof another listing. 272(b) Charitable Organizations—CriteriaA summary of the law of charitable organizations, for purposes of the law ofcharitable giving, is difficult because the term charitable is used in many ways.This portion of the analysis is confined to a summary of the law pertaining tothose organizations that are charitable in the sense that they are also charitableorganizations for federal tax exemption purposes. 273This type of organization is a charitable donee if it isorganized and operated exclusively for religious, charitable, scientific, literary,or educational purposes, or to foster national or international amateursports competition (but only if no part of its activities involve the provision ofathletic facilities or equipment), or for the prevention of cruelty to children oranimals. 274In addition, the following criteria must be met for an organization to be considereda charitable donee:• It is created or organized in the United States or in a possession of theUnited States, or under the law of the United States, a state, the District ofColumbia, or a possession of the United States. 275267 IRC § 170(c)(4). These organizations are tax-exempt by reason of IRC § 501(c)(8). See Tax-Exempt Organizations§ 18.4. This is a category of charitable donee only in the case of contributions by individuals.268 IRC § 170(c)(5) These organizations are tax-exempt by reason of IRC § 501(c)(13). See Tax-Exempt Organizations§ 18.6.Occasionally, the IRS will allow deductibility of a gift, as if it had been made to a charitable donee, when therecipient is a type of tax-exempt organization that does not itself qualify as a charitable donee, as long as thegift is made for a charitable purpose. Instances of organizations of this nature include title-holding corporations(tax-exempt by reason of IRC § 501(c)(2); see Tax-Exempt Organizations § 18.2) and business and professionalorganizations (see Tax-Exempt Organizations ch. 13).269 IRC § 501(a).270 IRC § 501(c).271 IRC § 170.272 IRC § 170(c).273 That is, they are organizations described in IRC § 501(c)(3).274 IRC § 170(c)(2)(B).275 IRC § 170(c)(2)(A). 96