David Daniel and Annette Daniel - Page 9

                                                 - 9 -                                                   

                              (3) A post or organization of war veterans, or an                          
                        auxiliary unit or society of, or trust or foundation                             
                        for, any such post or organization --                                            
                                     (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                                       
                              shareholder or individual.                                                 
            Penrith Church                                                                               
                  The record shows that Penrith Church was incorporated under                            
            the Jamaican Companies Act on June 9, 1987, under the name of                                
            Pentecostal Holiness Church of Jamaica Limited.  Penrith Church                              
            is not a qualified donee under section 170(c)(2) because it was                              
            not created or organized in the United States or in any                                      
            possession thereof, or under the laws of the United States, any                              
            State, the District of Columbia, or any possession of the United                             
            States.  See ErSelcuk v. Commissioner, 30 T.C. 962 (1958);                                   
            Alisobhani v. Commissioner, T.C. Memo. 1994-629.  Therefore, we                              
            hold that petitioners, as a matter of law, are not entitled to                               
            deductions for their charitable contributions to Penrith Church.4                            







            4           At trial, petitioners' called as their witness Carol                             
            Johnson (Johnson).  Johnson resided in Kingston, Jamaica, and is                             
            a missionary evangelist in the Pentecostal Holiness Church in                                
            Jamaica.  Johnson thoroughly convinced us that petitioners                                   
                                                                           (continued...)                



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