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PERCENTAGE LIMITATIONS§ 7.11 INTERPLAY OF SPECIAL 30 PERCENT/GENERAL30 PERCENT LIMITATIONSThe federal income tax law favors gifts of capital gain property to public charitableorganizations over gifts of money to charitable organizations that are notpublic charitable organizations. Thus, a gift of money to, for example, a privatefoundation may not be fully deductible under the general 30 percent limitationbecause of a gift of capital gain property in the same year to a public charitableorganization.This rule is illustrated by the following example:EXAMPLE 7.19X had a contribution base for 2005 of $100,000. During that year X contributed an item ofcapital gain property, having a fair market value of $60,000, to PC, a public charitableorganization, and contributed money in the amount of $5,000 to PF, a private foundation. Thegift of money was not deductible in computing X’s tax liability for 2005. This is because the fairmarket value of the property contributed was in excess of 50 percent of X’s contribution base.(The actual charitable contribution deduction for this gift of property was limited to the amountequal to 30 percent of X’s contribution base, or $30,000.) X thus had two carryovers to 2006.One was a carryover of $30,000 for the gift to PC (subject to the 30 percent limitationapplicable to gifts of capital gain property) and the other was a carryover of the $5,000 (subjectto the general 30 percent limitation).§ 7.12 TWENTY PERCENT LIMITATIONIn general, contributions of capital gain property by individuals to charitableorganizations that are not public charitable organizations are subject to a 20 percentlimitation. 102 This limitation is a percentage of the donor’s contribution basefor the contribution year.EXAMPLE 7.20A had, for 2005, a contribution base of $100,000. During that year, she contributed an item ofcapital gain property to PF, a private foundation. The fair market value of the property was$25,000. A made no other charitable gifts in 2005. A was allowed a federal income taxcharitable contribution deduction for 2005 of $20,000 (20% of $100,000).(a) General RulesIn some instances, however, the actual annual limitation on deductible giftsof this nature is less than the 20 percent limitation. This occurs when gifts of capitalgain property to public charitable organizations are also made in the samecontribution year. Thus, the charitable deduction for this type of gift is confinedto the lesser of:• The amount allowable under the 20 percent limitation, or• An amount equal to the excess of 30 percent of the donor’s contributionbase for the year over the amount of charitable contributions of capital102IRC § 170(b)(1)(D)(i). 210