The Catholic University of America


Tax Issues Related to Donations

Miscellaneous Tax Issues Related to Donations

IRS Revenue Proc. 2007-45

This Rev. Proc. posted July 16, 2007 contains annotated sample declarations of trust and alternate provisions that meet the requirements for an inter vivos charitable lead annuity trust (CLAT) providing for annuity payments payable to one or more charitable beneficiaries for the annuity period followed by the distribution of trust assets to one or more noncharitable remaindermen.


IRS releases Draft Form 4720 for Excise Taxes on Endowments, Executive Compensation-NACUBO, 9-28-18 

Section 4960 of the IRC, enacted in the Tax Cuts and Jobs Act (TCJA), imposes an excise tax equal to 21 percent of the sum of the compensation exceeding $1 million for the taxable year with respect to any covered employee and any excess parachute payment paid by the organization to any covered employee.

An institution is subject to the excise tax on endowments if it meets the following threshold tests:

(1) The institution has at least 500 tuition-paying students, based upon a daily average student count, during the preceding tax year;

(2) More than 50 percent of those students must have been located in the United States; and (3) At the end of the preceding tax year, the aggregate fair market value of the assets that are not used directly in carrying out the institution’s exempt purpose and are held by the institution and related organizations must be at least $500,000 per student.

Notice of Proposed Rulemaking for Filing Endownment Excise Taxes on Form 4720, 83 Fed. Reg. 55653, Nov. 7, 2018























updated 1-10-19 mlo 












new page 7/31/07
Page checked July 1st, 2010, FJL.