Page:United States Statutes at Large Volume 78.djvu/86

 44

PUBLIC LAW 88-272-FEB. 26, 1964

[78 STAT.

" (B) for purposes of subsection (b)(1)(C), the amount of the charitable contributions for the taxable year (and for all prior taxable years beginning after December 31, 1963) shall be determined without the application of subsection (b)(5) and solely by reference to charitable contributions described in paragraph (2). I f the taxpayer elects to have subsection (b)(1)(C) apply for the taxable year, then for such taxable year subsection (a) shall apply only with respect to charitable contributions described in paragraph (2), and no amount of charitable contributions made in the taxable year or any prior taxable year may be treated under subsection (b)(5) as having been made in the taxable year or in any succeeding taxable year. "(2) QUALIFIED CONTRIBUTIONS.—The charitable contributions referred to in paragraph (1) are— " (A) any charitable contribution described in subsection (b)(1)(A); " (B) any charitable contribution, not described in subsection (b)(1)(A), to an organization described in subsection (c)(2) substantially more than half of the assets of which is devoted directly to, and substantially all of the income of which is expended directly for, the active conduct of the activities constituting the purpose or function for which it is organized and operated; " (C) any charitable contribution, not described in subsection (b)(1)(A), to an organization described in subsection (c)(2) which meets the requirements of paragraph (3) with respect to such charitable contribution; and " (D) any charitable contribution payment of which is made on or before the date of the enactment of the Revenue Act of 1964. "(3)

ORGANIZATIONS EXPP:NDING AT LEAST 50 P?:RCENT OF DONOR'S

CONTRIBUTIONS.—An Organization shall be an organization referred to in paragraph (2)(C), with respect to any charitable contribution, only if— " (A) not later than the close of the third year after the organization's taxable year in which the contribution is received (or before such later time as the Secretary or his delegate may allow upon good cause shown by such organization), such organization expends an amount equal to at least 50 percent of such contribution for— "(i) the active conduct of the activities constituting the purpose or function for which it is organized and operated, "(ii) assets which are directly devoted to such active conduct, "(iii) contributions to organizations which are described in subsection (b)(1)(A) or in paragraph (2) (B) of this subsection, or "(iv) any combination of the foregoing; and " (B) for the period beginning with the taxable year in which such contribution is received and ending with the taxable year in which subparagraph (A) is satisfied with respect to such contribution, such organization expends all of its net income (determined without regard to capital gains and losses) for the purposes described in clauses (i), (ii), (iii), and (iv) of subparagraph (A). If the taxpayer so elects (at such time and in such manner as the Secretary or his delegate by regulations prescribes) with respect

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