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C. Whether NHF’s Receipts for Petitioners’ Payments Comply With
Section 170(f)(8) and Section 1.170A-13(f)(6), Income Tax
Regs.
Petitioners contend that NHF’s receipts comply with section
170(f)(8) and were contemporaneous written acknowledgments of
their contributions. They further contend that the receipts were
accurate because they received no benefits in exchange for their
payments to NHF. Petitioners’ contention fails to take into
account the definition of consideration in section 1.170A-
13(f)(6), Income Tax Regs. As stated above, under that
regulation, 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.
NHF did not state in its receipts that NHF paid premiums for
the insurance policy on the life of Mrs. Addis under which
petitioners would receive 44 percent of the death benefits. NHF
failed to make a good faith estimate of the value of those
benefits as required by section 170(f)(8)(B)(iii).
The legislative history accompanying the enactment of
section 170(f)(8) states: “Organizations * * * [that provide
goods or services in consideration for payments from donors]
often do not inform their donors that all or a portion of the
amount paid by the donor may not be deductible as a charitable
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