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charitable contributions; deductions are strictly a matter of
legislative grace, and petitioners must satisfy the specific
statutory requirements for their claimed deductions. Deputy v.
DuPont, 308 U.S. 488, 493 (1940).
Section 170(a)(1) generally allows a deduction for any
charitable contribution made during the taxable year. In this
context, a charitable contribution includes a gift of property to
a charitable organization, made with charitable intent and
without the receipt or expectation of receipt of adequate
consideration. See Hernandez v. Commissioner, 490 U.S. 680, 690
(1989); United States v. Am. Bar Endowment, 477 U.S. 105, 116-118
(1986); see also sec. 1.170A-1(h)(1) and (2), Income Tax Regs.
While section 170(f)(3) generally does not allow an individual to
deduct a charitable contribution for a gift of property
consisting of less than his or her entire interest in that
property, an exception applies in the case of a “qualified
conservation contribution.” See sec. 170(f)(3)(B)(iii). A
contribution of real property is a qualified conservation
contribution if (1) the real property is a “qualified real
property interest”, (2) the contributee is a “qualified
organization”, and (3) the contribution is “exclusively for
conservation purposes” (collectively, three requirements). Sec.
170(h)(1); see also sec. 1.170A-14(a), Income Tax Regs.
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