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paid for tickets or other privileges in connection with
fund-raising affairs for charity are deductible. * * *
The examples that the Commissioner cited included tickets for
charitable events such as banquets, balls, bazaars, concerts, and
athletic events. In Rev. Rul. 67-246, supra, the Commissioner
ruled that, where a taxpayer receives an item of value for a
payment to a charitable organization, (1) the payment is not
deductible unless the taxpayer intends to make a gift; and (2)
any deduction is limited to the excess of the payment over the
fair market value of what is received in exchange.
Courts have also applied those two requirements. Thus, a
portion of a payment is deductible as a charitable contribution
under section 170 if the following two conditions are met:
“First, the payment is deductible only if and to the extent it
exceeds the market value of the benefit received. Second, the
excess payment must be ‘made with the intention of making a
gift.’” United States v. Am. Bar Endowment, supra at 117-118,
(quoting Rev. Rul. 67-246, 1967-2 C.B. at 105); Sklar v.
Commissioner, supra at 621.
In United States v. Am. Bar Endowment, supra at 118, the
Supreme Court said:
The sine qua non of a charitable contribution is a
transfer of money or property without adequate
consideration. The taxpayer, therefore, must at a
minimum demonstrate that he purposely contributed money
or property in excess of the value of any benefit he
received in return. * * *
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