[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(c)-2]

[Page 596]
 
                       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(c)-2  Disallowance of charitable, etc., deductions in the case of gifts made after December 31, 1969.

    (a) Organizations subject to section 507(c) tax. Section 508(d)(1) 
provides that, in the case of gifts made after December 31, 1969, a 
deduction which would otherwise be allowable under section 2522 for a 
gift to or for the use of an organization upon which the tax provided by 
section 507(c) has been imposed shall not be allowed if the gift is made 
by the donor after notification is made under section 507(a) or if the 
donor is a substantial contributor (as defined in section 507(d)(2)) who 
makes such gift in his taxable year (as defined in section 441) which 
includes the first day on which action is taken by such organization 
that culminates in the imposition of the tax under section 507(c) and 
any subsequent taxable year. This paragraph does not apply if the entire 
amount of the unpaid portion of the tax imposed by section 507(c) is 
abated under section 507(g) by the Commissioner or his delegate.
    (b) Taxable private foundations, section 4947 trusts, etc. Section 
508(d)(2) provides that, in the case of gifts made after December 31, 
1969, a deduction which would otherwise be allowable under section 2522 
shall not be allowed if the gift is made to or for the use of--
    (1) A private foundation or a trust described in section 4947(a)(2) 
in a taxable year of such organization for which such organization fails 
to meet the governing instrument requirements of section 508(e) 
(determined without regard to section 508(e)(2) (B) and (C)), or
    (2) Any organization in a period for which it is not treated as an 
organization described in section 501(c)(3) by reason of its failure to 
give notification under section 508(a) of its status to the 
Commissioner.

For additional rules, see Sec.  1.508-2(b)(1) of this chapter (Income 
Tax Regulations).
    (c) Foreign organizations with substantial support from foreign 
sources. Section 4948(c)(4) provides that, in the case of gifts made 
after December 31, 1969, a deduction which would otherwise be allowable 
under section 2522 for a gift to or for the use of a foreign 
organization which has received substantially all of its support (other 
than gross investment income) from sources without the United States 
shall not be allowed if the gift is made (1) after the date on which the 
Commissioner has published notice that he has notified such organization 
that it has engaged in a prohibited transaction, or (2) in a taxable 
year of such organization for which it is not exempt from taxation under 
section 501(a) because it has engaged in a prohibited transaction after 
December 31, 1969.

[T.D. 7318, 39 FR 25458, July 11, 1974]