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B. Definition of Consideration Under Section 1.170A-13(f)(6),
Income Tax Regs.
Petitioners contend that they did not receive consideration
for, i.e., that they did not receive goods or services in
exchange for, their $36,000 payments to NHF because NHF was not
required to use those payments to pay the premiums on the life
insurance policy. Petitioners contend that the fact that they
expected NHF to invest in the life insurance policy was not
consideration for purposes of section 170(f)(8). We disagree.
A donee organization provides goods or services in
consideration for a taxpayer’s payment if, at the time the donor
makes the payment to the donee organization, the taxpayer
receives or expects to receive goods or services in exchange for
that payment. Section 1.170A-13(f)(6), Income Tax Regs.,
provides:
(6) In consideration for. A donee organization
provides goods or services in consideration for a
taxpayer’s payment if, at the time the taxpayer makes
the payment to the donee organization, the taxpayer
receives or expects to receive goods or services in
exchange for that payment. * * *
Section 1.170A-13(f)(6), Income Tax Regs., is in keeping
with the traditional view that a charitable contribution is one
for which the donor has “‘no expectation of any quid pro quo’”.
Hernandez v. Commissioner, 490 U.S. 680, 690 (1989) (quoting S.
Rept. 1622, 83d Cong., 2d Sess. 196 (1954); H. Rept. 1337, 83d
Cong., 2d Sess. A44 (1954) (the legislative history defines a
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