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SPECIAL GIFT SITUATIONS6. Contributions “to” charity. To be deductible, a contribution must be to (or forthe use of) a qualified charitable organization. 590 To be to a charity, the giftmust be made under circumstances in which the donee has full control ofthe donated money or property and full discretion as to its use. 591 Whenthe charitable organization utilizes the services of a for-profit company toreceive and process the donated vehicles, the gift may be deemed to be tothe company, rather than the charity, in which case there is no charitablededuction. This matter can be resolved, however, by denominating thecompany as the formal agent of the charity for this purpose. 592 The IRS hasapproved this approach. 5937. Private benefit doctrine. The IRS has raised the issue of applicability of theprivate benefit doctrine. 594 The agency posits situations in which an automobiledealer or some other third party is the “true beneficiary” of theplan. 595 If the private benefit is more than insubstantial, the charitableorganization’s tax-exempt status could be at risk.8. Private inurement doctrine. The IRS has also raised the possibility of application,in this setting, of the private inurement doctrine. 596 When the thirdparty is an insider with respect to the charitable organization, that doctrinecould be implicated. The IRS’s position is that an insubstantiality thresholdis inapplicable in the private inurement context, so transgressions ofthat doctrine may also endanger the organization’s exempt status.9. Intermediate sanctions. The intermediate sanctions penalties 597 may beapplicable when a transaction constitutes an excess benefit transaction andthe charitable organization’s dealings are with a person who is a disqualifiedperson with respect to it. The IRS has applied the intermediate sanctionspenalties in connection with used vehicle donation programs. 59810. Intermediate sanctions penalty. In conjunction with applying the intermediatesanctions rules to a vehicle donation program, the IRS also assessespenalties for willfully and flagrantly violation of these sanctions. 599Continuing abuses concerning contributions of used vehicles have led to congressionalinquiries (particularly by the Senate Finance Committee) and an investigationby the General Accounting Office. According to the GAO, in 2000, about733,000 taxpayers reported charitable gifts of used vehicles totaling $2.5 billion invalue and a tax savings of $654 million. Late in 2001, the IRS and the NationalAssociation of State Charity Officials issued an “alert” to prospective donors ofused vehicles, summarizing the federal and state law involved. 600 Thereafter, in590 See §§ 3.1(a), 10.2.591 See, e.g., § 9.10.592 See § 9.10.593 Rev. Rul. 2002-67, 2002-47 I.R.B. 873; Priv. Ltr. Rul. 200230005.594 See § 3.3(b).595 See note 597.596 See § 3.3(b).597 See Hopkins, The Law of Intermediate Sanctions: A Guide for Nonprofits (John Wiley & Sons, 2003).598 Tech. Adv. Mem. 200243057.599 IRC § 6684.600 IR-2001-112. 348