Letter from Gary Schultz: Tax Deductibility of Charitable Contributions

Dear Mr. Schultz:

You have requested our opinion, as general counsel to The Pennsylvania State University, with regard to the University's tax-exempt status and the deductibility of contributions to the University.

The Pennsylvania State University is the Land Grant University of the Commonwealth of Pennsylvania. It has provide programs in instruction, research, and public service in accord with the Charter of the University for more than a century. The Pennsylvania State University is an instrumentality of the Commonwealth of Pennsylvania, providing the essential governmental function of higher education and, as such, is qualified as proper recipient of income which is exempt from Federal Income Tax by virtue of Internal Revenue Code Section 115. This tax-exempt status granted under Section 115 precludes any requirement of obtaining an additional specific exemption under Internal Revenue Code Section 501(c)(3)

The University is not a private foundation by virtue of the exemptions in Section 509(a)(1)and (2). Because the University has not sought tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, it has not formally established its non-private foundation status with the Internal Revenue Service.

Contributions to the Pennsylvania State University are deductible for Federal Income Tax purposes by virtue of Internal Revenue Code Section 170(c) and 170(b)(1)(A)(ii), and the applicable regulations thereunder.

Enclosed is a copy of a letter dated September 9, 1949, to the University from the United States Treasury Department to the effect described above.

This opinion letter may be disclosed to any person or distributed in any manner the University shall deem appropriate.