TO: Department Officers, Past Department Commanders, Division/District Commanders/Hubmasters, Commission/Committee Chairs
FOR:Immediate Statewide Distribution
FROM:Bryan Coleman, Department Judge Advocate – firstname.lastname@example.org
Several Legion posts claim they are having trouble convincing corporate sponsors that contributions to them may be deducted as charitable. Here is the answer.
“The status of The American Legion and its Departments and Posts may allow acceptance of charitable gifts and bequests. The following might be of assistance to you. Deductability of Contributions to The American Legion is governed by 26 D.S.C. 170 (c) (3) Internal Revenue Code of 1954, as amended. Deductibility for bequests is established by 26 D.S.C. Section 2055 (a) (4).
Section 170( c)(3) reads as follows:
Section 170. Charitable, etc., contributions and gifts
(a) Allowance of deduction
(1) General Rule. – There shall be allowed as a deduction any charitable contribution (as defined in sub-section (c) payment of which is made within the taxable year. A charitable contribution shall be allowable as a deduction only if verified under regulations prescribed by the Secretary or his delegate.
(c) Charitable contribution defined. For purposes of this section the term ‘charitable contribution’ means a contribution or gift to or for the use of –
(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.”