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§7.1 INTRODUCTIONThat is, the law in this context basically differentiates between gifts to publiccharitable organizations and gifts to private foundations and certain other taxexemptorganizations. Although this subject is discussed elsewhere, 6 it isappropriate to note that the term public charitable organization is used to refer toa charitable organization 7 that is not a private foundation. The principal typesof public charitable organizations are churches, schools, colleges, universities,hospitals, a variety of publicly supported charitable organizations, and supportingorganizations.The deductibility of gifts by individuals involves several sets, and sometimescombinations, of percentage limitations. The percentages that are applicableto individuals are applied to an individual donor’s contribution base. 8The essence of this chapter is the following:• An individual’s contribution base essentially is the same as his or heradjusted gross income. 9• An individual’s federal income tax charitable contribution deduction fora tax year is subject to limitations of 50, 30, and/or 20 percent of the individual’scontribution base.• The maximum federal income tax charitable contribution deduction for atax year for an individual is 50 percent of his or her contribution base.• An individual’s federal income tax charitable contribution deduction for atax year cannot exceed an amount equal to 50 percent of his or her contributionbase when the gift (or gifts) is of money (and/or ordinary incomeproperty and/or short-term capital gain property) and the charitablerecipient is a public charitable organization.• In general, an individual’s federal income tax charitable contributiondeduction for a tax year cannot exceed an amount equal to 30 percent ofhis or her contribution base when the gift is of capital gain property thathas appreciated in value and the charitable recipient is a public charitableorganization.• An individual donor can elect to have a 50 percent limitation apply, whenthe gift is of capital gain property that has appreciated in value and thecharitable recipient is a public charitable organization, by reducing thededuction by the amount of the appreciation element.• An individual’s federal income tax charitable contribution deduction fora tax year cannot exceed an amount equal to 30 percent of his or her contributionbase when the gift (or gifts) is of money and the charitable recipientis an entity other than a public charitable organization.• An individual’s federal income tax charitable contribution deduction for atax year cannot exceed an amount equal to 20 percent of his or her contributionbase when the gift is of capital gain property that has appreciated6 See § 3.4.7 That is, an organization that is tax-exempt under IRC § 501(a) by reason of being described in IRC § 501(c)(3).8 See § 7.2.9 The concept of adjusted gross income is discussed in § 2.4. 189