
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC2522]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
                          CHAPTER 12--GIFT TAX
 
                        Subchapter C--Deductions
 
Sec. 2522. Charitable and similar gifts


(a) Citizens or residents

    In computing taxable gifts for the calendar year, there shall be 
allowed as a deduction in the case of a citizen or resident the amount 
of all gifts made during such year to or for the use of--
        (1) the United States, any State, or any political subdivision 
    thereof, or the District of Columbia, for exclusively public 
    purposes;
        (2) a corporation, or trust, or community chest, fund, or 
    foundation, organized and operated exclusively for religious, 
    charitable, scientific, literary, or educational purposes, or to 
    foster national or international amateur sports competition (but 
    only if no part of its activities involve the provision of athletic 
    facilities or equipment), including the encouragement of art and the 
    prevention of cruelty to children or animals, no part of the net 
    earnings of which inures to the benefit of any private shareholder 
    or individual, which is not disqualified for tax exemption under 
    section 501(c)(3) by reason of attempting to influence legislation, 
    and which 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, but only if such gifts are to be used exclusively 
    for religious, charitable, scientific, literary, or educational 
    purposes, including the encouragement of art and the prevention of 
    cruelty to children or animals;
        (4) posts or organizations of war veterans, or auxiliary units 
    or societies of any such posts or organizations, if such posts, 
    organizations, units, or societies are organized in the United 
    States or any of its possessions, and if no part of their net 
    earnings insures to the benefit of any private shareholder or 
    individual.

Rules similar to the rules of section 501(j) shall apply for purposes of 
paragraph (2).

(b) Nonresidents

    In the case of a nonresident not a citizen of the United States, 
there shall be allowed as a deduction the amount of all gifts made 
during such year to or for the use of--
        (1) the United States, any State, or any political subdivision 
    thereof, or the District of Columbia, for exclusively public 
    purposes;
        (2) a domestic corporation 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, no part of the net earnings of which 
    inures to the benefit of any private shareholder or individual, 
    which is not disqualified for tax exemption under section 501(c)(3) 
    by reason of attempting to influence legislation, and which 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 trust, or 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, no 
    substantial part of the activities of which is carrying on 
    propaganda, or otherwise attempting, to influence legislation, and 
    which 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; but 
    only if such gifts are to be used within the United States 
    exclusively for such purposes;
        (4) a fraternal society, order, or association, operating under 
    the lodge system, but only if such gifts are to be used within the 
    United States exclusively for religious, charitable, scientific, 
    literary, or educational purposes, including the encouragement of 
    art and the prevention of cruelty to children or animals;
        (5) posts or organizations of war veterans, or auxiliary units 
    or societies of any such posts or organizations, if such posts, 
    organizations, units, or societies are organized in the United 
    States or any of its possessions, and if no part of their net 
    earnings inures to the benefit of any private shareholder or 
    individual.

(c) Disallowance of deductions in certain cases

    (1) No deduction shall be allowed under this section for a gift to 
of \1\ for the use of an organization or trust described in section 
508(d) or 4948(c)(4) subject to the conditions specified in such 
sections.
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``or''.
---------------------------------------------------------------------------
    (2) Where a donor transfers an interest in property (other than an 
interest described in section 170(f)(3)(B)) to a person, or for a use, 
described in subsection (a) or (b) and an interest in the same property 
is retained by the donor, or is transferred or has been transferred (for 
less than an adequate and full consideration in money or money's worth) 
from the donor to a person, or for a use, not described in subsection 
(a) or (b), no deduction shall be allowed under this section for the 
interest which is, or has been transferred to the person, or for the 
use, described in subsection (a) or (b), unless--
        (A) in the case of a remainder interest, such interest is in a 
    trust which is a charitable remainder annuity trust or a charitable 
    remainder unitrust (described in section 664) or a pooled income 
    fund (described in section 642(c)(5)), or
        (B) in the case of any other interest, such interest is in the 
    form of a guaranteed annuity or is a fixed percentage distributed 
    yearly of the fair market value of the property (to be determined 
    yearly).

    (3) Rules similar to the rules of section 2055(e)(4) shall apply for 
purposes of paragraph (2).

            (4) Reformations to comply with paragraph (2)

        (A) In general

            A deduction shall be allowed under subsection (a) in respect 
        of any qualified reformation (within the meaning of section 
        2055(e)(3)(B)).

        (B) Rules similar to section 2055(e)(3) to apply

            For purposes of this paragraph, rules similar to the rules 
        of section 2055(e)(3) shall apply.

(d) Special rule for irrevocable transfers of easements in real property

    A deduction shall be allowed under subsection (a) in respect of any 
transfer of a qualified real property interest (as defined in section 
170(h)(2)(C)) which meets the requirements of section 170(h) (without 
regard to paragraph (4)(A) thereof).

(e) Cross references

            (1) For treatment of certain organizations providing child 
        care, see section 501(k).
            (2) For exemption of certain gifts to or for the benefit of 
        the United States and for rules of construction with respect to 
        certain bequests, see section 2055(f).
            (3) For treatment of gifts to or for the use of Indian 
        tribal governments (or their subdivisions), see section 7871.

(Aug. 16, 1954, ch. 736, 68A Stat. 410; Pub. L. 85-866, title I, 
Sec. 30(d), Sept. 2, 1958, 72 Stat. 1631; Pub. L. 91-172, title II, 
Sec. 201(d)(3), (4)(C), (D), Dec. 30, 1969, 83 Stat. 561, 562; Pub. L. 
91-614, title I, Sec. 102(c)(2), Dec. 31, 1970, 84 Stat. 1841; Pub. L. 
94-455, title XII, Secs. 1307(d)(1)(B)(iv), (v), 1313(b)(3), title XIX, 
Sec. 1902(a)(11), (12)(D), title XXI, Sec. 2124(e)(3), Oct. 4, 1976, 90 
Stat. 1727, 1730, 1805, 1806, 1920; Pub. L. 97-34, title IV, 
Secs. 423(b), 442(c), Aug. 13, 1981, 95 Stat. 317, 322; Pub. L. 97-248, 
title II, Sec. 286(b)(3), Sept. 3, 1982, 96 Stat. 570; Pub. L. 97-473, 
title II, Sec. 202(b)(7), Jan. 14, 1983, 96 Stat. 2610; Pub. L. 98-369, 
div. A, title X, Secs. 1022(c), 1032(b)(3), July 18, 1984, 98 Stat. 
1028, 1034; Pub. L. 99-514, title XIV, Sec. 1422(b), Oct. 22, 1986, 100 
Stat. 2717; Pub. L. 100-203, title X, Sec. 10711(a)(5), (6), Dec. 22, 
1987, 101 Stat. 1330-464.)


                               Amendments

    1987--Subsecs. (a)(2), (b)(2), (3). Pub. L. 100-203 inserted ``(or 
in opposition to)'' after ``on behalf of''.
    1986--Subsecs. (d), (e). Pub. L. 99-514 added subsec. (d) and 
redesignated former subsec. (d) as (e).
    1984--Subsec. (c)(4). Pub. L. 98-369, Sec. 1022(c), added par. (4).
    Subsec. (d). Pub. L. 98-369, Sec. 1032(b)(3), added par. (1) and 
redesignated former pars. (1) and (2) as (2) and (3), respectively.
    1983--Subsec. (d). Pub. L. 97-473 designated existing provisions as 
par. (1), substituted ``bequests'' for ``gifts'' second time appearing 
in par. (1) as so designated, and added par. (2).
    1982--Subsec. (a). Pub. L. 97-248 inserted provision that rules 
similar to rules of section 501(j) apply for purposes of par. (2).
    1981--Subsec. (a). Pub. L. 97-34, Sec. 442(c), substituted ``year'' 
for ``quarter'' in two places in provision preceding par. (1).
    Subsec. (b). Pub. L. 97-34, Sec. 442(c), substituted ``year'' for 
``quarter'' in provision preceding par. (1).
    Subsec. (c)(3). Pub. L. 97-34, Sec. 423(b), added par. (3).
    1976--Subsec. (a)(1). Pub. L. 94-455, Sec. 1902(a)(12)(D), struck 
out ``Territory'' after ``any State''.
    Subsec. (a)(2). Pub. L. 94-455, Secs. 1307(d)(1)(B)(iv), 1313(b)(3), 
substituted ``which is not disqualified for tax exemption under section 
501(c)(3) by reason of attempting to influence legislation'' for ``no 
substantial part of the activities of which is carrying on propaganda, 
or otherwise attempting, to influence legislation'' after ``shareholder 
or individual'' and inserted ``or to foster national or international 
amateur sports competition (but only if no part of its activities 
involve the provision of athletic facilities or equipment)'' after ``or 
educational purposes''.
    Subsec. (b)(1). Pub. L. 94-455, Sec. 1902(a)(12)(D), struck out 
``Territory'' after ``any State''.
    Subsec. (b)(2). Pub. L. 94-455, Sec. 1307(d)(1)(B)(v), substituted 
``which is not disqualified for tax exemption under section 501(c)(3) by 
reason of attempting to influence legislation'' for ``no substantial 
part of the activities of which is carrying on propaganda, or otherwise 
attempting, to influence legislation'' after ``shareholder or 
individual''.
    Subsec. (c)(2). Pub. L. 94-455, Sec. 2124(e)(3), substituted 
``(other than an interest described in section 170(f)(3)(B))'' for 
``(other than a remainder interest in a personal residence or farm or an 
undivided portion of the donor's entire interest in property)'' after 
``an interest in property''.
    Subsec. (d). Pub. L. 94-455, Sec. 1902(a)(11), substituted subsec. 
(d) for former subsec. (d), pars. (1) through (10), which dealt with 
cross references to specific exemptions and rules of construction for 
gifts to the United States and its instrumentalities.
    1970--Pub. L. 91-614 substituted ``quarter'' for ``year'' in three 
places.
    1969--Subsecs. (a)(2), (b)(2), (3). Pub. L. 91-172, 
Sec. 201(d)(4)(C), (D), inserted non-participation and non-intervention 
in political campaigns as an additional qualification.
    Subsec. (c). Pub. L. 91-172, Sec. 201(d)(3), substituted substantive 
provisions for simple reference to sections 503 and 681 in which such 
substantive provisions were formerly set out.
    1958--Subsec. (c). Pub. L. 85-866 substituted ``503'' for ``504''.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-203 applicable with respect to activities 
after Dec. 22, 1987, see section 10711(c) of Pub. L. 100-203, set out as 
a note under section 170 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable to transfers and 
contributions made after Dec. 31, 1986, see section 1422(e) of Pub. L. 
99-514, set out as a note under section 2055 of this title.


                    Effective Date of 1984 Amendment

    Amendment by section 1022(c) of Pub. L. 98-369 applicable to 
reformations after Dec. 31, 1978, but inapplicable to any reformation to 
which section 2055(e)(3) of this title as in effect before July 18, 
1984, applies, see section 1022(e)(1) of Pub. L. 98-369, set out as a 
note under section 2055 of this title.
    Amendment by section 1032(b)(3) of Pub. L. 98-369 applicable to 
taxable years beginning after July 18, 1984, see section 1032(c) of Pub. 
L. 98-369, set out as a note under section 170 of this title.


                    Effective Date of 1983 Amendment

    For effective date of amendment by Pub. L. 97-473, see section 
204(4) of Pub. L. 97-473, set out as an Effective Date note under 
section 7871 of this title.


                    Effective Date of 1982 Amendment

    Amendment by Pub. L. 97-248 effective Oct. 5, 1976, see section 
286(c) of Pub. L. 97-248, set out as a note under section 501 of this 
title.


                    Effective Date of 1981 Amendment

    Section 423(c)(2) of Pub. L. 97-34 provided that: ``The amendment 
made by subsection (b) [amending this section] shall apply to transfers 
after December 31, 1981.''
    Amendment by section 442(c) of Pub. L. 97-34 applicable with respect 
to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 97-34, 
set out as a note under section 2501 of this title.


                    Effective Date of 1976 Amendment

    Amendment by section 2124(e)(3) of Pub. L. 94-455 applicable with 
respect to contributions or transfers made after June 13, 1976, see 
section 2124(e)(4) of Pub. L. 94-455, set out as a note under section 
170 of this title.


                    Effective Date of 1970 Amendment

    Amendment by Pub. L. 91-614 applicable with respect to gifts made 
after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a 
note under section 2501 of this title.


                    Effective Date of 1969 Amendment

    Amendment by section 201(d)(3) of Pub. L. 91-172 applicable to gifts 
made after Dec. 31, 1969, except that the amendment of par. (2) of 
subsec. (c) applicable to gifts made after July 31, 1969, see section 
201(g)(4)(D) of Pub. L. 91-172, set out as a note under section 170 of 
this title.
    Amendment by section 201(d)(4)(C), (D) of Pub. L. 91-172 applicable 
to gifts and transfers made after Dec. 31, 1969, see section 
201(g)(4)(E) of Pub. L. 91-172, set out as a note under section 170 of 
this title.


Charitable Lead Trusts and Charitable Remainder Trusts in Case of Income 
                             and Gift Taxes

    For inclusion of provisions comparable to section 2055(e)(3) of this 
title in this section, see section 514(b) of Pub. L. 95-600, set out as 
a note under section 2055 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 170, 501, 508, 1015, 2012, 
2503, 2642, 4947, 4948, 6019, 7871 of this title; title 12 section 3051; 
title 15 section 80a-3; title 16 section 1285; title 22 section 3307.
