Title 26 — Internal Revenue CodeRelease 119-73
§2522 Charitable and similar gifts
Title 26 › Subtitle Subtitle B— - Estate and Gift Taxes › Chapter CHAPTER 12— - GIFT TAX › Subchapter Subchapter C— - Deductions › § 2522
Summary
Allows taxpayers to subtract from their taxable gifts the value of money or property given to certain public or charitable groups. Gifts to the U.S., states, or local governments for public use are allowed. Gifts to charities, religious, scientific, literary, or educational groups, groups that support amateur sports (but not for providing facilities or equipment), fraternal lodges (when used for those purposes), and U.S. veterans’ posts are allowed so long as the group’s earnings don’t benefit private individuals, it’s not disqualified under section 501(c)(3) for lobbying, and it does not take part in political campaigns. Nonresident noncitizens may deduct similar gifts, but some recipients must be domestic and some gifts must be used inside the United States. Some gifts are not deductible or have special rules. Gifts to organizations listed in sections 508(d) or 4948(c)(4) are not allowed. If a donor keeps a part of the property or gives part to noncharitable use, the charitable part is not deductible unless it is set up as a charitable remainder annuity trust (CRAT), a charitable remainder unitrust (CRUT), a pooled income fund, or as a guaranteed annuity or fixed yearly percentage of fair market value. Gifts to donor‑advised funds are deductible only if the sponsoring organization is not a fraternal or veterans type listed above or a certain non‑functionally integrated type III supporting organization, and the donor gets a written statement that the sponsor has exclusive legal control of the assets. Qualified gifts of real property that meet section 170(h) rules are allowed. Special rules limit deductions for fractional gifts of tangible personal property and require recapture of the deduction (plus interest) if the donor does not transfer remaining interests within the earlier of 10 years or the donor’s death, or if the donee did not have substantial possession and use; recaptured amounts increase tax by 10 percent. See sections 501(k), 2055(f), and 7871 for related rules.
Full Legal Text
Title 26, §2522
Internal Revenue Code — Source: USLM XML via OLRC
(a)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.
(b)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)(1)No deduction shall be allowed under this section for a gift to or 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.
(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)(A)A deduction shall be allowed under subsection (a) in respect of any qualified reformation (within the meaning of section 2055(e)(3)(B)).
(B)For purposes of this paragraph, rules similar to the rules of section 2055(e)(3) shall apply.
(5)A deduction otherwise allowed under subsection (a) for any contribution to a donor advised fund (as defined in section 4966(d)(2)) shall only be allowed if—
(A)the sponsoring organization (as defined in section 4966(d)(1)) with respect to such donor advised fund is not—
(i)described in paragraph (3) or (4) of subsection (a), or
(ii)a type III supporting organization (as defined in section 4943(f)(5)(A)) which is not a functionally integrated type III supporting organization (as defined in section 4943(f)(5)(B)), and
(B)the taxpayer obtains a contemporaneous written acknowledgment (determined under rules similar to the rules of section 170(f)(8)(C)) from the sponsoring organization (as so defined) of such donor advised fund that such organization has exclusive legal control over the assets contributed.
(d)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)(1)(A)No deduction shall be allowed for a contribution of an undivided portion of a taxpayer’s entire interest in tangible personal property unless all interests in the property are held immediately before such contribution by—
(i)the taxpayer, or
(ii)the taxpayer and the donee.
(B)The Secretary may, by regulation, provide for exceptions to subparagraph (A) in cases where all persons who hold an interest in the property make proportional contributions of an undivided portion of the entire interest held by such persons.
(2)(A)The Secretary shall provide for the recapture of an amount equal to any deduction allowed under this section (plus interest) with respect to any contribution of an undivided portion of a taxpayer’s entire interest in tangible personal property—
(i)in any case in which the donor does not contribute all of the remaining interests in such property to the donee (or, if such donee is no longer in existence, to any person described in section 170(c)) on or before the earlier of—
(I)the date that is 10 years after the date of the initial fractional contribution, or
(II)the date of the death of the donor, and
(ii)in any case in which the donee has not, during the period beginning on the date of the initial fractional contribution and ending on the date described in clause (i)—
(I)had substantial physical possession of the property, and
(II)used the property in a use which is related to a purpose or function constituting the basis for the organizations’ exemption under section 501.
(B)The tax imposed under this chapter for any taxable year for which there is a recapture under subparagraph (A) shall be increased by 10 percent of the amount so recaptured.
(C)For purposes of this paragraph, the term “initial fractional contribution” means, with respect to any donor, the first gift of an undivided portion of the donor’s entire interest in any tangible personal property for which a deduction is allowed under subsection (a) or (b).
(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.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification section 1218(c) and 1234(c) of Pub. L. 109–280, which directed the amendment of section 2522 without specifying the act to be amended, were executed to this section, which is section 2522 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. See 2006 Amendment notes below.
Amendments
2018—Subsec. (c)(1). Pub. L. 115–141 substituted “gift to or for” for “gift to of for”. 2007—Subsec. (e)(1)(A). Pub. L. 110–172, § 11(a)(16)(A), in introductory provisions, substituted “all interests in the property are” for “all interest in the property is”. Subsec. (e)(2). Pub. L. 110–172, § 3(d)(2)(A), (B), redesignated par. (3) as (2) and struck out heading and text of former par. (2). Text read as follows: “In the case of any additional contribution, the fair market value of such contribution shall be determined by using the lesser of— “(A) the fair market value of the property at the time of the initial fractional contribution, or “(B) the fair market value of the property at the time of the additional contribution.” Subsec. (e)(2)(A)(i). Pub. L. 110–172, § 11(a)(16)(B), substituted “interests” for “interest” and “on or before” for “before”. Subsec. (e)(2)(C). Pub. L. 110–172, § 3(d)(2)(C), added subpar. (C). Subsec. (e)(3). Pub. L. 110–172, § 3(d)(2)(B), redesignated par. (3) as (2). Subsec. (e)(4). Pub. L. 110–172, § 3(d)(2)(A), struck out heading and text of par. (4). Text read as follows: “For purposes of this subsection— “(A) Additional contribution.—The term ‘additional contribution’ means any gift for which a deduction is allowed under subsection (a) or (b) of any interest in a property with respect to which the donor has previously made an initial fractional contribution. “(B) Initial fractional contribution.—The term ‘initial fractional contribution’ means, with respect to any donor, the first gift of an undivided portion of the donor’s entire interest in any tangible personal property for which a deduction is allowed under subsection (a) or (b).” 2006—Subsec. (c)(5). Pub. L. 109–280, § 1234(c), added par. (5). See Codification note above. Subsecs. (e), (f). Pub. L. 109–280, § 1218(c), added subsec. (e) and redesignated former subsec. (e) as (f). See Codification note above. 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, § 1022(c), added par. (4). Subsec. (d). Pub. L. 98–369, § 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, § 442(c), substituted “year” for “quarter” in two places in provision preceding par. (1). Subsec. (b). Pub. L. 97–34, § 442(c), substituted “year” for “quarter” in provision preceding par. (1). Subsec. (c)(3). Pub. L. 97–34, § 423(b), added par. (3). 1976—Subsec. (a)(1). Pub. L. 94–455, § 1902(a)(12)(D), struck out “Territory” after “any State”. Subsec. (a)(2). Pub. L. 94–455, §§ 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, § 1902(a)(12)(D), struck out “Territory” after “any State”. Subsec. (b)(2). Pub. L. 94–455, § 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, § 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, § 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, § 201(d)(4)(C), (D), inserted non-participation and non-intervention in political campaigns as an additional qualification. Subsec. (c). Pub. L. 91–172, § 201(d)(3), substituted substantive provisions for simple reference to section 503 and 681 in which such substantive provisions were formerly set out. 1958—Subsec. (c). Pub. L. 85–866 substituted “503” for “504”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2007 AmendmentAmendment by section 3(d)(2) of Pub. L. 110–172 effective as if included in the provisions of the Pension Protection Act of 2006, Pub. L. 109–280, to which such amendment relates, see section 3(j) of Pub. L. 110–172, set out as a note under section 170 of this title.
Effective Date
of 2006 AmendmentAmendment by section 1218(c) of Pub. L. 109–280 applicable to contributions, bequests, and gifts made after Aug. 17, 2006, see section 1218(d) of Pub. L. 109–280, set out as a note under section 170 of this title. Amendment by section 1234(c) of Pub. L. 109–280 applicable to contributions made after the date which is 180 days after Aug. 17, 2006, see section 1234(d) of Pub. L. 109–280, set out as a note under section 170 of this title.
Effective Date
of 1987 AmendmentAmendment 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 AmendmentAmendment 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 AmendmentAmendment 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 AmendmentFor
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 AmendmentAmendment 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 Pub. L. 97–34, title IV, § 423(c)(2), Aug. 13, 1981, 95 Stat. 317, 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 AmendmentAmendment 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 AmendmentAmendment 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 AmendmentAmendment 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 TaxesFor 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.
Reference
Citations & Metadata
Citation
26 U.S.C. § 2522
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73