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TITLE 26-INTERNAL REVENUE CODE by subsec. (d)(1)(B) and (3) of this section were trans- ferred to the Administrator of the Environmental Pro. tection Agency by Reorg. Plan No. 3, of 1970, § 2(a)(9), elf. Dec. 2, 1970, 35 P.R. 15623, 84 Stat. 2086, set out In the Appendix to Title 5, Government Organization and Employees. SECTION REFERRM TO IN OhIM SECTIoNs This section is referred to in sections 57, 642, 1082, 1245, 1250 of this title; title 33 sections 1316, 1326. § 170. Charitable, etc., contributions and gifts (a) Allowance of deduction (1) General rule There shall be allowed as a deduction any charitable contribution (as defined in subsec- tion (c)) payment of which is made within the taxable year. A charitable contribution shall be allowable as a deduction only if verified under regulat'ons prescribed by the Secre- tary. (2) Corporations on accrual basis In the case of a corporation reporting its taxable income on the accrual basis, if- (A) the board of directors authorizes a charitable contribution during any taxable year, and (B) payment of such contribution is made after the close of such taxable year and on or before the 15th day of the third month following the close of such taxable year, then the taxpayer may elect to treat such contribution as paid during such taxable year. The election may be made only at the time of the filing of the return for such taxable year, and shall be signified in such manner as the Secretary shall by regulations prescribe. (3) Future interests in tangible personal property For purposes of this section, payment of a charitable contribution which consists of a future interest in tangible personal property shall be treated as made only when all inter- vening interests in, and rights to the actual possession or enjoyment of, the property have expired or are held by persons other than the taxpayer or those standing in a rela- tionship to the taxpayer described in section 267(b). For purposes of the preceding sen- tence, a fixture which is intended to be sev- ered from the real property shall be treated as tangible personal property. (b) Percentage limitations (1) Individuals In the case of an individual, the deduction provided in subsection (a) shall be limited as provided in the succeeding subparagraphs. (A) General rule Any charitable contribution to- (I) a church or a convention or associ- ation of churches, (ii) an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in at- tendance at the place where its education- al activities are regularly carried on, (iii) an organization the principal pur- pose or functions of which are the provid- ing of medical or hospital care or medical education or medical research, if the orga- nization is a hospital, or if the organiza- tion is a medical research organization di- rectly engaged in the continuous active conduct of medical research In conjunc- tion with a hospital, and during the calen- dar year in which the contribution is made such organization is committed to spend such contributions for such re- search before January 1 of the fifth cal- endar year which begins after the date such contribution is made, (iv) an organization which normally re- ceives a substantial part of its support (exclusive of income received in the eyer- cise or performance by such organization of its charitable, educational, or other purpose or function constituting the basis for its exemption under section 501(a)) from the United States or any State or political subdivision thereof or from direct or indirect contributions from the general public, and which Is organized and operated exclusively to receive, hold, invest, and administer property and to make expenditures to or for the benefit of a college or university which is an organi- zation referred to in clause (ii) of this sub- paragraph and which is an agency or in- strumentality of a 10tate or political subdi- vision thereof, or which is owned or oper- ated by a State or political subdivision thereof or by an agency or instrumental- ity of one or more States or political sub- divisions, (v) a governmental unit referred to in subsection (c)(1), (vi) an organization referred to in sub- section (c)(2) which normally receives a substantial part of its support (exclusive of income received In the exercise or per- formance by such organization of its charitable, educational, or other purpose or function constituting the basis for its exemption under section 501(a)) from a governmental unit referred to in subsec- tion (c)(1) or from direct or indirect con- tributions from the general public, (vii) a private foundation described in subparagraph (D), or (viii) an organization described in sec- tion 509(a)(2) or (3), shall be allowed to the extent that the ag- gregate of such contributions does not exceed 50 percent of the taxpayer's contri- bution base for the taxable year. (B) Other contributions Any charitable contribution other than a charitable contribution to which subpara- graph (A) applies shall be allowed to the extent that the aggregate of such contribu- tions does not exceed the lesser of- (1) 20 percent of the taxpayer's contri- bution base for the taxable year, or (ii) the excess of 50 percent of the tax- payer's contribution base for the taxable year over the amount of charitable contri- butions allowable under subparagraph (A) (determined without regard to subpara- graph (C)). §170 Page 162