Philanthropy,” in Van Til & Associates, Critical Issues in American Philanthropy, ch. 2 (San Francisco: Jossey-Bass, 1990). Also Payton, Philanthropy: Voluntary Action for the Public Good (New York: Macmillan, 1988); O'Connell, Philanthropy in Action (New York: The Foundation Center, 1987).15 15 The complexity of the federal tax law is such that the charitable sector (using the term in its broadest sense) is also divided into two segments: charitable organizations that are considered private (private foundations) and charitable organizations that are considered public (all charitable organizations other than those that are considered private); these nonprivate charities are frequently referred to as public charities. See Tax-Exempt Organizations ch. 12.
16 16 McGovern, “The Exemption Provisions of Subchapter F,” 29 Tax Law. 523 (1976). Other overviews of the various tax exemption provisions are in Hansmann, “The Rationale for Exempting Nonprofit Organizations from Corporate Income Taxation,” 91 Yale L.J. 69 (1981); Bittker & Rahdert, “The Exemption of Nonprofit Organizations from Federal Income Taxation,” 85 Yale L.J. 299 (1976).
17 17 H. Rep. No. 72, 78th Cong., 1st Sess. 17 (1928).
18 18 Lapin, “The Golden Hills and Meadows of the Tax-Exempt Cemetery,” 44 Taxes 744 (1966).
19 19 “Comment,” 27 Iowa L. Rev. 128, 151–155 (1941).
20 20 H. Rep. No. 704, 73d Cong., 2d Sess. 21–25 (1934).
21 21 These are the charitable, educational, religious, scientific, and like organizations referenced in IRC § 501(c)(3).
22 22 See Tax-Exempt Organizations § 1.3.
23 23 In 1894, Congress imposed a tax on corporate income. This was the first time Congress was required to define the appropriate subjects of tax exemption (inasmuch as prior tax schemes specified the entities subject to taxation). The Tariff Act of 1894 provided exemption for nonprofit charitable, religious, and educational organizations; fraternal beneficiary societies; certain mutual savings banks; and certain mutual insurance companies. The 1894 legislation succumbed to a constitutional law challenge (Pollock v. Farmers' Loan & Trust Co., 157 U.S. 429 (1895), overruled on other grounds sub nom. South Carolina v. Baker, 485 U.S. 505 (1988)). The Sixteenth Amendment was subsequently ratified, and the Revenue Act of 1913 was enacted. In general, Pollack, “Origins of the Modern Income Tax, 1894–1913,” 66 Tax Law. (no. 2) (Winter 2013).
24 24 McGovern, “The Exemption Provisions of Subchapter F,” 29 Tax Law. 523, 524 (1976).
25 25 Income Tax Regulations (Reg.) § 1.501(c)(3)-1(d)(2).
26 26 Statute of Charitable Uses, 43 Eliz., c.4.
27 27 Cobb, The Rise of Religious Liberty in America, 482–528 (1902).
28 28 Torpey, Judicial Doctrines of Religious Rights in America, 171 (1948).
29 29 Trinidad v. Sagrada Orden de Predicadores de la Provincia del Santisimo Rosario de Filipinas, 263 U.S. 578, 581 (1924).
30 30 Walz v. Tax Commission, 397 U.S. 664, 673 (1970).
31 31 Portland Golf Club v. Commissioner, 497 U.S. 154, 161 (1990).
32 32 Duffy v. Birmingham, 190 F.2d 738, 740 (8th Cir. 1951).
33 33 Id.
34 34 St. Louis Union Trust Co. v. United States, 374 F.2d 427, 432 (8th Cir. 1967).
35 35 McGlotten v. Connally, 338 F. Supp. 448, 456 (D.D.C. 1972).
36 36 Green v. Connally, 330 F. Supp. 1150, 1162 (D.D.C. 1971), aff'd sub nom. Coit v. Green, 404 U.S. 997 (1971).
37 37 7 Id., 330 F. Supp. at 1162. In a situation where a partnership intended to make $4.75 million in charitable contributions but the gifts were, due to a clerical error, made by means of a business corporation's checks and the matter was corrected, a court refused to uphold the IRS's disallowance of the deduction, declaring that “[t]o disallow a charitable deduction simply because of a clerical error goes against the liberal policy of encouraging charitable giving” (Green v. United States, 2016 WL 552964 (W.D. Okla. 2016)). Likewise, Green v. United States, 2015 WL 1482508 (W.D. Okla. 2015), rev'd on other ground, 880 F.3d 519 (10th Cir. 2017).
38 38 H. Rep. No. 1860, 75th Cong., 3d Sess. 19 (1939).
39 39 Department of the Treasury, Proposals for Tax Change, Apr. 30, 1973.
40 40 Report of the Commission on Private Philanthropy and Public Needs: Giving in America—Toward a Stronger Voluntary Sector at 9–10 (1975).
41 41 Friendly, “The Dartmouth College Case and the Public-Private Penumbra,” 12 Tex. Q. (2d Supp.) 141, 171 (1969). Two other prominent sources are Rabin, “Charitable Trusts and Charitable Deductions,” 41 N.Y.U. L. Rev. 912 (1966); Saks, “The Role of Philanthropy: An Institutional View,” 46 Va. L. Rev. 516 (1960).
42 42 Fink, “Taxation and Philanthropy—A 1976 Perspective,” 3 J. Coll. & Univ. L. 1, 6–7 (1975).
43 43 Gardner, “Bureaucracy vs. The Private Sector,” 212 Current 17–18 (May 1979).
44 44 Id. at 17.
45 45
