The Tax Law of Charitable Giving, 2016 Cumulative Supplement

BRUCE R. HOPKINS (Kansas City, MO) is a senior partner with the firm Polsinelli Shughart PC. He is also the author of more than 35 books, including The Law of Tax-Exempt Organizations, 10e, The Law of Fundraising, 4e, Nonprofit Law for Colleges and Universities, Nonprofit Governance, and Nonprofit Law Made Easy, as well as the monthly newsletter Bruce R. Hopkins' Nonprofit Counsel, all published by Wiley. Hopkins earned his Juris Doctorate and Master of Laws degrees at the George Washington University. He has practiced law for 40 years and is a member of the District of Columbia and Missouri bars. Hopkins received the 2007 Outstanding Nonprofit Lawyer Award (Vanguard Lifetime Achievement Award) from the American Bar Association, Section of Business Law, and Committee on Nonprofit Corporations. He is listed in The Best Lawyers in America, Nonprofit Organizations/Charities Law, 2007-2008.

Preface ix About the Author xi Book Citations xiii PART ONE INTRODUCTION TO THE TAX LAW OF CHARITABLE GIVING 1 Chapter One Charitable Giving Law: Basic Concepts 3 1.4 Statistical Profile of Charitable Sector 3 Chapter Two The United States Tax System: An Overview 5 2.5 Deductions 5 2.6 Standard Deduction 6 2.7 Concept of Taxable Income 6 2.15 Taxation of Income 6 PART TWO BASICS OF CHARITABLE GIVING LAW 9 Chapter Three Fundamental Concepts 11 3.1 Meaning of Gift 11 3.2 Meaning of Donor 12 3.4 Public Charities and Private Foundations 12 3.6 Factors Affecting Income Tax Deductibility of Charitable Gifts 12 PART THREE CHARITABLE GIVING IN GENERAL 13 Chapter Six Timing of Charitable Deductions 15 6.15 Gifts by S Corporations 15 Chapter Seven Percentage Limitations 17 7.12A Qualified Conservation Contributions 17 7.12B Conservation Gifts by Farmers and Ranchers 18 Chapter Eight Estate and Gift Tax Considerations 21 8.2 Federal Gift Tax 21 Chapter Nine Special Gift Situations 23 9.3 Inventory 23 9.7 Conservation Property 24 Easements and Other Conservation Property 24 9.10 Retirement Plan Accounts 30 9.19 Bargain Sales 31 9.22A Contributions by Estates 31 Chapter Ten Other Aspects of Deductible Giving 33 10.1 Valuation of Property 34 10.7 Interrelationship with Business Expense Deduction 35 10.14 Penalties 36 10.15 Transactions of Interest 38 PART FOUR PLANNED GIVING 39 Chapter Twelve Charitable Remainder Trusts 41 12.4 Issues 41 12.12 Calculation of Charitable Deduction 42 Chapter Thirteen Pooled Income Funds 45 13.7 Pass-Through of Depreciation 45 Chapter Sixteen Charitable Lead Trusts 47 16.7 Private Foundation Rules 47 PART FIVE INTERNATIONAL CHARITABLE GIVING 49 Chapter Eighteen International Giving by Individuals during Lifetime 51 PART SIX ADMINISTRATION OF CHARITABLE GIVING PROGRAMS 53 Chapter Twenty-One Substantiation and Appraisal Requirements 55 21.3 Substantiation Requirements for Gifts of $250 or More 55 21.4 Substantiation Requirements for Noncash Gifts 57 21.5 Appraisal Requirements 58 21.7 Appraisals of Clothing and Household Items 58 21.8 Burden of Proof Rules 58 Chapter Twenty-Three Special Events, Corporate Sponsorships, and Donor-Advised Funds 59 23.4 Donor-Advised Funds 59 PART SEVEN APPENDICES 61 Appendix H Monthly Federal Interest Rates Used in Valuing Partial Interests (IRC 7520) 63 Appendix I Deemed Rates of Return for Transfers to New Pooled Income Funds 73 TABLES 75 Cumulative Table of Cases 76 Cumulative Table of IRS Revenue Rulings and Revenue Procedures 88 Cumulative Table of IRS Private Determinations Cited in Text 91 Cumulative Table of IRS Private Letter Rulings, Technical Advice Memoranda, and General Counsel Memoranda 95 Table of Cases Discussed in Bruce R. Hopkins Nonprofit Counsel 107 Cumulative Table of IRS Revenue Rulings Discussed in Bruce R. Hopkins Nonprofit Counsel 113 Cumulative Table of Private Letter Rulings and Technical Advice Memoranda Discussed in Bruce R. Hopkins Nonprofit Counsel 115 Table of Charitable Giving Law Tax Reform Proposals 117 Cumulative Index 125