[Code of Federal Regulations]
[Title 26, Volume 14]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR25.2522(a)-1]

[Page 593-594]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 25_GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954--Table of Contents
 
Sec.  25.2522(a)-1  Charitable and similar gifts; citizens or residents.

    (a) In determining the amount of taxable gifts for the ``calendar 
period'' (as defined in Sec.  25.2502-1(c)(1)) there may be deducted, in 
the case of a donor who was a citizen or resident of the United States 
at the time the gifts were made, all gifts included in the ``total 
amount of gifts'' made by the donor during the calendar period (see 
section 2503 and the regulations thereunder) and made to or for the use 
of:
    (1) The United States, any State, Territory, or any political 
subdivision thereof, or the District of Columbia, for exclusively public 
purposes.
    (2) Any corporation, trust, community chest, fund, or foundation 
organized and operated exclusively for religious charitable, scientific, 
literary, or educational purposes, including the encouragement of art 
and the prevention of cruelty to children or animals, if no part of the 
net earnings of the organization inures to the benefit of any private 
shareholder or individual, if it is not disqualified for tax exemption 
under section 501(c)(3) by reason of attempting to influence 
legislation, and if, in the case of gifts made after December 31, 1969, 
it does not participate in, or intervene in (including the publishing or 
distributing of statements), any political campaign on behalf of or in 
opposition to any candidate for public office.
    (3) A fraternal society, order, or association, operating under the 
lodge system, provided the gifts are to be used by the society, order or 
association exclusively for one or more of the purposes set forth in 
subparagraph (2) of this paragraph.
    (4) Any post or organization of war veterans or auxiliary unit or 
society thereof, if organized in the United States or any of its 
possessions, and if no part of its net earnings inures to the benefit of 
any private shareholder or individual.

The deduction is not limited to gifts for use within the United States, 
or to gifts to or for the use of domestic corporations, trusts, 
community chests, funds, or foundations, or fraternal societies, orders, 
or associations operating under the lodge system. An organization will 
not be considered to meet the requirements of subparagraph (2) of this 
paragraph, or of paragraph (b) (2) or (3) of this section, if such 
organization engages in any activity which would cause it to be 
classified as an ``action'' organization under paragraph (c)(3) of Sec.  
1.501(c)(3)-1 of this chapter (Income Tax Regulations). For the 
deductions for charitable and similar gifts made by a nonresident who 
was not a citizen of the United States at the time the gifts were made, 
see Sec.  25.2522(b)-1. See Sec. Sec.  25.2522(c)-1 and 25.2522(c)-2 for 
rules relating to the disallowance of deductions to trusts and 
organizations which engage in certain prohibited transactions or whose 
governing instruments do not contain certain specified requirements.
    (b) The deduction under section 2522 is not allowed for a transfer 
to a corporation, trust, community chest, fund, or foundation unless the 
organization or trust meets the following four tests:
    (1) It must be organized and operated exclusively for one or more of 
the specified purposes.
    (2) It must not be disqualified for tax exemption under section 
501(c)(3) by reason of attempting to influence legislation.
    (3) In the case of gifts made after December 31, 1969, it must not 
participate in, or intervene in (including the publishing or 
distributing of statements), any political campaign on behalf of any 
candidate for public office.
    (4) Its net earnings must not inure in whole or in part to the 
benefit of private shareholders or individuals other

[[Page 594]]

than as legitimate objects of the exempt purposes.

For further limitations see Sec.  25.2522(c)-1, relating to gifts to 
trusts and organizations which have engaged in a prohibited transaction 
described in section 681(b)(2) or section 503(c).
    (c) In order to prove the right to the charitable, etc., deduction 
provided by section 2522 the donor must submit such data as may be 
requested by the Internal Revenue Service. As to the extent the 
deductions provided by this section are allowable, see section 2524.

[T.D. 6334, 23 FR 8904, Nov. 15, 1958, as amended by T.D. 7012, 34 FR 
7691, May 15, 1969; T.D. 7238, 37 FR 28733, Dec. 29, 1972; T.D. 7318, 39 
FR 25457, July 11, 1974; T.D. 7910, 48 FR 40375, Sept. 7, 1983; T.D. 
8308, 55 FR 35594, Aug. 31, 1990]