Federal Tax

Charitable Contributions By Corporations (Portfolio 794)

  • This Portfolio discusses issues that arise in connection with the income tax deduction for charitable contributions made by corporations.

Description

Tax Management Portfolio, Charitable Contributions by Corporations, No. 794, discusses issues that arise in connection with the income tax deduction for charitable contributions made by corporations. Although the basic rules authorizing an income tax deduction for contributions by individuals and corporations are similar, corporations contemplating charitable contributions, or creating their own charitable foundations, encounter a number of problems not applicable to individuals.

This Portfolio analyzes the mechanical rules governing the charitable deduction as they apply to corporate donors, including the special rules applicable to gifts of inventory, the special problems of closely-held corporations, corporate foundations, the percentage limitations and carryovers applicable to contributions by corporations, and the issues posed by the interrelation of § 162 (Trade or Business Expenses) and 170 (Charitable Contributions and Gifts) of the Internal Revenue Code, as well as alternatives to direct corporate giving.

Table of Contents

I. Requirements for a Charitable Deduction
II. Special Provisions Pertaining to Corporations
III. Denial of § 170 Treatment
IV. Contribution Rules for Inventory
V. Other § 170 Requirements of Importance to Corporate Charitable Contributions
VI. The Relationship of § 170 and 162
VII. Special Provisions for S Corporations
VIII. Creating a Corporate Foundation
IX. Alternatives to Direct Corporate Giving: Supporting Organizations, Donor-Advised Funds, and
X. Disaster Relief
XI. Miscellaneous Matters Relating to Corporate Contributions

osteen-carolyn-2015
Carolyn Osteen
Consultant And Retired Partner
Ropes & Gray LLP
Adelbert Spitzer
Partner
Ropes & Gray LLP
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