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TITLE 26-INTERNAL REVENUE CODE (2) A corporation, trust, or community chest, fund, or foundation- (A) created or organized in the United States or in any possession thereof, or under the law of the United States, any State, the District of Columbia, or any pos- session of the United States; (B) 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 equip- ment), or for the prevention of cruelty to children or animals; (C) no part of the net earnings of which inures to the benefit of any private share- holder or individual; and (D) which is not disqualified for tax ex- emption 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 any candidate for public office. A contribution or gift by a corporation to a trust, chest, fund, or foundation shall be de- ductible by reason of this paragraph only if it is to be used within the United States or any of its possessions exclusively for purposes specified in subparagraph (B). (3) A post or organization of war veterans, or an auxiliary unit or society of, or trust or foundation for, any such post or organiza- tion- (A) organized in the United States or any of its possessions, and (B) no part of the net earnings of which inures to the benefit of any private share- holder or individual. (4) In the case of a contribution or gift by an individual, a domestic fraternal society, order, or association, operating under the lodge system, but only if such contribution or gift is to be used exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. (5) A cemetery company owned and operat- ed exclusively for the benefit of its members, or any corporation chartered solely for burial purposes as a cemetery corporation and not permitted by its charter to engage in any business not necessarily incident to that pur- pose, if such company or corporation is not operated for profit and no part of the net earnings of such company or corporation inures to the benefit of any private share- holder or individual. For purposes of this section, the term "charita- ble contribution" also means an amount treated under subsection (g) as paid for the use of an organization described in paragraph (2), (3), or (4). (d) Carryovers of excess contributions (1) Individuals (A) In general In the case of an individual, if the amount of charitable contributions described in sub- section (b)(1)(A) payment of which Is made within a taxable year (hereinafter in this paragraph referred to as the "contribution year") exceeds 50 percent of the taxpayer's contribution base for such year, such excess shall be treated as a charitable contribution described in subsection (b)(1)(A) paid in each of the 5 succeeding taxable years in order of time, but, with respect to any such succeeding taxable year, only to the extent of the lesser of the two following amounts: (I) the amount by which 50 percent of the taxpayer's contribution base for such succeeding taxable year exceeds the sum of the charitable contributions described in subsection (b)(1)(A) payment of which is made by the taxpayer within such suc- ceeding taxable year (determined without regard to this subparagraph) and the charitable contributions described in sub- section (b)(1)(A) payment of which was made in taxable years before the contri- bution year which are treated under this subparagraph as having been paid In such succeeding taxable year; or (i) in the case of the first succeeding taxable year, the amount of such excess, and in the case of the second, third, fourth, or fifth succeeding taxable year, the portion of such excess not treated under this subparagraph as a charitable contribution described in subsection (b)(1)(A) paid in any taxable year inter- vening between the contribution year and such succeeding taxable year. (B) Special rule for net operating loss carryovers In applying subparagraph (A), the excess determined under subparagraph (A) for the contribution year shall be reduced to the extent that such excess reduces taxable income (as computed for purposes of the second sentence of section 172(b)(2)) and in- creases the net operating loss deduction for a taxable year succeeding the contribution year. (2) Corporations (A) In general Any contribution made by a corporation in a taxable year (hereinafter in this para- graph referred to as the "contribution year") in excess of the amount deductible for such year under subsection (b)(2) shall be deductible for each of the 5 succeeding taxable years in order of time, but only to the extent of the lesser of the two following amounts: (I) the excess of the maximum amount deductible for such succeeding tax- able year under subsection (b)(2) over the sum of the contributions made in such year plus the aggregate of the excess contribu- tions which were made in taxable years before the contribution year and which are deductible under this subparagraph for such succeeding taxable year; or (ii) in the case of the first succeeding taxable year, the amount of such excess contribution, and in the case of the second, third, fourth, or fifth succeeding taxable year, the portion of such excess contribution not deductible under this subparagraph for any taxable § 170 Page 164