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From whom would fees be collected? 2082 Determining the amounts of legal fees 2085 Recent IRS action and summary of policy
questions 2085 V Discussion Draft of Criteria and Rules for Determining
Public Interest Litigation 2089 Three Basic Criteria 2089 Applicable Rules 2089 Application of the Criteria 2089 Organizational Rules 2090 Operational Rules 2090 Attorneys' Fees 2091
Footnotes 2093
An Analysis of the Federal Tax Distinctions Between Public and Private Charitable Organizations Laurens Williams and Donald V. Moorehead(1975) 2099
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Deductibility of Contributions 2112 Tax on Investment Income 2113 Annual Public Reports 2115 Restrictions on Financial Practices and Programs 2116 Restrictions on Self-Dealing 2116 Minimum Distribution Requirements 2117 Excess Business Holdings 2118 Restrictions on Speculative Investments 2118 Restrictions on Program Activities 2119 Attempts to Influence Legislation 2119 Influencing Elections 2120 Restriction on Grants to Individuals and to
Other Private Charities 2120 III Findings and Recommendations 2120 General Comments 2120 Areas of Questionable Distinctions 2121 Areas in Which Distinction May Be Appropriate . 2122 Possible Bases for Distinction 2122 Type of organization 2122 Public support 2123 Functional test 2123 Public control 2123 Application to Specific Areas 2123 IV Conclusions 2124 Footnotes 2124 The Charitable Deduction Under Section 170 of the Internal Revenue
Code John A. Wallace and Robert W. Fisher (1975) 2131 Introduction 2131
Original Justification for the Charitable Deduction 2131 Overview of the Statutory Scheme 2132 I Definition of Charitable Contribution 2133 Statutory Definition 2133 Governmental Units 2133 Charitable Corporations, Trusts, Community Chests 2134 Posts or Organizations of War Veterans 2134 Domestic Fraternal Societies, Orders, or Associations
Operated Under the Lodge System 2134 Cemetery Companies 2135 Amounts Paid to Maintain Certain Students as
Members of Taxpayer's Household 2135 Publication 78 '. 2135 II Partial and Split-Interest Transfers 2136 Remainder Interests in Trust 2136 Income Interests in Trust 2138 Transfers of Partial Interests 2139
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III Amount of Contributions: Appreciated Property Rules 2140 Development of Reduction Rules 2140 Contributions of Ordinary Income Property 2141 Contributions of Unrelated Use Tangible Personal Property 2142 Other Problems . 2143 IV Amount of Deduction: Percentage Limitations . 2145 The Limitations in General 2145 Capital Gain Property Limitation 2146 Interrelationship of Limitations 2148 Carryover Rules 2149 V Bargain Sales . . . 2151 Interaction with Percentage Limitations 2152 Exchanges 2152 Interaction with Reduction Rules . . 2153 Charitable Transfers in Exchange for Annuities 2153 Charitable Transfer Subject to or in Exchange for
the Donee's Assumption of Debt . . . 2154 VI Conclusion 2154 Footnotes 2155 Personal Deductions in an Ideal Income Tax William D. Andrews (Harvard Law Review reprint, 1972) . . 2163
I An Ideal Personal Income Tax 2167 The Meaning of Personal Income 2167 Money Income 2168 Income as Compensation for Services or Use
of Capital 2168 Income as Accretion . . 2169 Income as Consumption Plus Accumulation 2169 The Purpose of a Personal Income Tax 2172 The Strategy of Personal Income Taxation . . . 2173 The Role of Personal Deductions 2175 II The Medical Expense Deduction 2176
The Case for Excluding Medical Services from Personal
Consumption as a Component of Taxable Income 2177 A Closer Look at Distribution Implications . . 2179 Vertical Equity 2179 Horizontal Equity at Low Income Levels 2180 Allocation Effects . . . 2181 III The Charitable Contribution Deduction 2183 Alms for the Poor 2184 The Problem of Ordinary Gifts . . . . 2185 The Problem of Imputed Income 2187 Consumption as Power 2188 The Pleasure of Giving 2189
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Philanthropy More Broadly Defined 2189 Taxing the Recipient on the Value of Services
Provided by Charities 2190 Taxation of Charitable Contributions as a Proxy for
Taxing Benefits 2192 Taxing the Contributor in his Own Right 2193 Neutrality with Respect to Expenditure Choices 2196 Philanthropy from a Community Perspective 2196 Charity by the Idle Rich 2198 Contributions Out of Investment Income 2198 Unrealized Capital Appreciation 2199 Realized Capital Gains . 2199 Contributions Out of Accumulated Wealth Generally . . . 2200 Conclusion 2200 IV Summary and Implications 2200 Uses and Sources of Income 2201 Business and Household Activities 2203 Consumption and Accumulation 2204 Footnotes 2206 Explanation and Analysis of Split-Interest Gifts to Charity Theodore A.
Kurz and Barbara P. Robinson (1974) 2221 Introduction 2221
I Charitable Remainder Trusts in General . 2222 Charitable Remainder Annuity Trusts 2224 Charitable Remainder Unitrusts 2224 II Charitable Gift Annuities 2225 III Pooled Income Funds 2228 IV Charitable Lead Trusts 2229 V Remainder Interests in Personal Residences or Farms 2231 VI An Undivided Portion of the Donor's Entire Interest
in Property 2232 VII Charitable Gifts of Life Insurance 2233 VIII Valuation of Split-Interest Gifts to Charity . . 2234 The Effects of Revising the Six Percent Tables 2235 Why Different Types of Split-Interest Gifts of Money Can
Produce Different Sized Deductions 2235 IX Issues Relating to Split-Interest Gifts to Charity 2237
The Propriety of the Tax Treatment of Split-Interest
Gifts to Charity 2237 The Valuation of Split-Interest Gifts to Charity . 2238 Six Percent Tables . . . . . . 2238 Differences in Valuation for Various Types of
Split-1nterest Gifts 2239
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The Annual Five Percent Minimum Noncharitable Payout for
Charitable Remainder Trusts 2240 Inconsistencies Among Various Types of Split-Interest Gifts 2240 Investment in Tax-Exempt Securities 2240 Gift Annuities Versus Charitable Remainder
Annuity Trusts 2241 General Thrust and Effect of the 1969 Tax Reform Act
on Split-Interest Trusts; The Need for Transitional Relief 2241 Footnotes 2244
Part II
Appreciated Property Deduction
Legal Aspects of Charitable Contributions of Appreciated Property to Public Charities Harry K. Mansfield and Ronald L. Groves (1975) . . . . 2251 Introduction 2251 I The Present Rules and Their Evolution 2251 Pre-1969 History 2251 Tax Reform Act of 1969 2252 In General 2252 Contributions of "Ordinary Income Property" 2252 Enactment of section 170(e)(1)(A) 2252 Scope of section 170(e)(1)(A) 2253 Special categories of ordinary income property 2254 Contributions of "Capital Gain Property" 2255 Section 170(e)(1)(B) 2255
"Unrelated Use" 2256 Gifts to foundations 2257 Bargain Sales 2257 In general 2257 Interaction of sections 1011 (b) and 170(e)(1) 2258 Special problems 2258 The Thirty Percent Limitation 2259 II Some Legislative Alternatives to the Treatment of
Appreciated Property 2260 Retention of Existing Basic Framework with Specific
Modifications 2260 In General 2260 Possible Areas of Modification 2261 Return to Fair Market Value Standard 2261 Limitation of the Deduction to Cost in the
Case of All Appreciated Property 2261 Reduction of the Deductible Amount by a Uniform
Percentage of Appreciation in the Case of All
Appreciated Property 2262
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Return to Fair Market Value Standard but with Tax on Amount of Appreciation as if Property
Sold and Proceeds Contributed 2263 Inclusion of Appreciation in the Minimum Tax in
Year of Contribution 2263 Retention of Present Reduction Rules with Increase
in Holding Period for Long-Term Capital Gain Treatment 2263 III Theoretical and Policy Considerations 2264 Comparative Treatment of Transfers of Appreciated Property . . . . 2264 Alternatives for the Donor 2265 Gift of Cash 2265 Gift of Net Proceeds Following a Sale 2265 Retention of Property or Proceeds of Sale 2265 Other Gratuitous Transfers 2266 Summary 2266 Views of Some Tax Professors 2266 The Effect of the Deduction as an Inducement 2267 Footnotes 2268 A Pro-Charity Substitute for the Present Law Tax Treatment of Appreciated Property Contributed to Charity Gerard M. Brannon (1975) 2273
Part III Volunteer Services
Treatment of Volunteer Services and Related Expenses Under the
Internal Revenue Code Edmund C. Bennett (1976) 2287 I History of the Rule 2287 II The Distinction Between Property and Services 2288 Criteria to be Used in Making the Distinction 2289 Factors Limiting the Effectiveness of the Criteria 2291 III Availability of a Deduction for Expenditures 2291 The Rule in General 2291 Factors to be Considered 2293 The Effectiveness of the Deduction 2294 Footnotes 2294