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CFC Office Comments on Proposed Regs on Charitable Contribution Substantiation Rules

NOV. 6, 2008

CFC Office Comments on Proposed Regs on Charitable Contribution Substantiation Rules

DATED NOV. 6, 2008
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PUBLIC SUBMISSION

 

 

As of: November 06, 2008

 

Received date: Not specified

 

Status: Posted

 

Posted: November 06, 2008

 

Tracking No. 80796796

 

Comments Due: November 05, 2008

 

Submission Type: Web

 

 

Docket: IRS-2008-0090

 

Substantiation and Reporting Requirements for Cash and Noncash

 

Charitable Contribution Deductions

 

 

Comment On: IRS-2008-0090-0001

 

Substantiation and Reporting Requirements for Cash and Noncash

 

Charitable Contribution Deductions

 

 

Document: IRS-2008-0090-0012

 

Comment on FR Doc # E8-17953

 

Submitter Information

 

 

Name: Mark William Lambert

Address:

 

1900 E Street, NW

 

Room 5450

 

Washington, DC, 20415

 

Email: mark.lambert@opm.gov

Phone: 202-606-2564

Fax: 202-606-0902

Submitter's Representative: Mark W. Lambert

Organization: Office of CFC Operations

Government Agency Type: Federal

Government Agency: OPM

 

General Comment

 

 

1. 26 CFR 1.170A15 -- Will the Internal Revenue Service (IRS) regulations remove the requirements described in IRS Notice 2008-16? If not, we are concerned that some of the requirements from IRS Notice 2008-16 are impossible to meet by the Combined Federal Campaign (CFC) donee, the Principal Combined Fund Organization (PCFO), and others (see comment #2 below) could potentially increase the cost to administer the CFC significantly. Specifically, IRS Notice 2008-16 indicated a CFC donation through the PCFO distributed to another organization is only tax deductible in the amount that actually reaches the ultimate recipient organization and is not deductible until that amount actually reaches them. Based on the setup of the CFC, providing this information to a donor would be impossible for our PCFOs to meet by the filing deadline of the applicable tax year. Distributions and final campaign expenses are not known until a full year after the applicable tax year so the final amount reaching the ultimate recipient will not be known until then. This requirement appears to have been eliminated from the proposed regulations, but we want to confirm our understanding. If our understanding is not correct, the OPM recommends that this requirement be removed from IRS regulation 26 CFR 1.170A15

2. 26 CFR 1.170A15 -- Many cash and some payroll deduction contributions through the CFC are not designated to a specific charitable organization (undesignated funds). CFC regulations require that the PCFO distribute these undesignated funds proportionately among all charities who have received designations. Each local campaign receives designations to several hundred or even thousands of charities in each campaign. Based on the proposed IRS regulations, it appears that undesignated funds will be considered as a contribution to the CFC and the PCFO could provide a written communication to donors listing themselves or the CFC as the recipient rather than listing all of the hundreds or thousands of charities in the campaign who will ultimately receive the amounts not designated. Is this correct? If it is not, then this could potentially increase the cost of administering the CFC significantly and we request that undesignated funds be considered by the IRS as contributions to the CFC and allow PCFOs to provide written communications.

3. 26 CFR 1.170A15(a)(3) We recommend the IRS clarify this section by specifically stating a copy of the pledge card is not allowed to be used as substantiation by the donor for cash, check or other monetary gift contributions (contributions other than payroll deduction). The substantiation must be a bank record or written acknowledgement from the donee. This would make it clear to a reader that this is the requirement as opposed to a payroll deduction contribution where a pledge card is allowed to be used as substantiation by a donor as defined in 26 CFR 1.170A15(d)(2)(ii).

4. 26 CFR 1.170A15(d)(2)(ii) The proposed regulations require the name of the donee, which would be the PCFO for CFC purposes, appear on the pledge card used to substantiate payroll deduction contributions. In almost all instances, the PCFO is also a participant in the CFC and identifying the PCFO organization by name (e.g. United Way of XYZ) could be construed by other CFC participating charities as highlighting that organization over others to all donors. Each pledge card does contain the name of the local CFC. Is the name of the local CFC acceptable proof of the donee for IRS record keeping purposes? If so, then we request the regulatory language state A pledge card or other document prepared by or at the direction of the donee that identifies the donee or the name of the local Combined Federal Campaign.

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