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OTHER ASPECTS OF DEDUCTIBLE GIVINGdues paid to a trade, business, or professional association or other noncharitableorganization that engages in lobbying (unless the organization elects to pay aproxy tax on its lobbying expenditures). 177An anti-avoidance rule is intended to prevent persons from using charitableorganizations as a conduit to conduct lobbying activities, the costs of whichwould not be deductible if conducted directly by the donor. That is, a deductionis not allowed—either as a charitable contribution deduction or as a businessexpense deduction—for amounts contributed to a charitable organization thatconducts lobbying activities, if (1) the charity’s lobbying activities concern mattersof direct financial interest to the donor’s trade or business and (2) a principalpurpose of the contribution is to avoid the general disallowance rule that wouldapply if the contributor directly had conducted the lobbying activities. 178The application of this anti-avoidance rule to a contributor does not adverselyaffect the tax-exempt status of the charitable organization as long as the activityqualified as nonpartisan analysis, study, or research or was not substantial undereither the substantial part test or the expenditure test. 179 The determinationregarding a principal purpose of the contribution is based on the facts and circumstancessurrounding the contribution, including the existence of any formalor informal instructions relating to the charitable organization’s use of the contributionfor lobbying efforts (including nonpartisan analysis), the temporal nexusbetween the making of the contribution and the conduct of the lobbying activities,and any historical pattern of contributions by the donor to the charity. 180§ 10.9 DEDUCTIBLE GIFTS TO NONCHARITABLEORGANIZATIONSIt is possible for a contribution to be treated as a deductible charitable contributionwhen the gift is made to a noncharitable (including for-profit) organization.This occurs when the recipient of the gift is a pass-through entity and a charitableorganization is the ultimate donee. In some instances, the initial payee organizationis regarded as the agent of the organization that is the ultimate recipientof the organization, and the payor is considered, for federal tax purposes, tohave made the payment directly to the ultimate transferee, notwithstanding theflow of the payment through one or more intermediate (or conduit) entities. 181For example, contributions to a tax-exempt social club 182 were held to bedeductible as charitable contributions, because the club functioned as an authorizedagent for one or more charitable organizations, enabling the members of the club,when purchasing tickets for a social event: (1) to direct that the amount of theirtotal payment in excess of the price of the tickets be transferred to charitableorganizations; and (2) to deduct, as charitable gifts, that portion of the payment177 IRC § 162(e)(3), 6033(e)(2)(A)(i).178 IRC § 170(f)(9).179 H. Rep. No. 103–213, 103d Cong., 1st Sess. 610, n. 70 (1993). For a brief summary of these tests, see § 3.3(b),text accompanied by note 276.180 H. Rep. No. 103–213, 103d Cong., 1st Sess. 610 (1993).181 See §§ 10.2, 10.9.182 These organizations are tax-exempt under IRC § 501(a) by reason of description in IRC § 501(c)(7). See Tax-Exempt Organizations ch. 14. 380