Did You Know?

Whether you are looking to impress your colleagues or just want to learn more about the law, LCW has your back! Use and share these fun legal facts about various topics in public safety.

• More than 80 Los Angeles Fire Department personnel were dispatched to Turkey to assist with the aftermath of the 7.8 magnitude earthquake that hit Turkey and Northern Syria. They were assisted by a search-and-rescue squad from Fairfax, VA, the only such teams in the country that qualify under the USAID program to assist in international disaster response. They assessed more than 6,000 buildings for safety and performed hours of tunneling work on rescue attempts.

• The Los Angeles Fire Department used a helicopter to rescue four unsheltered people who were stranded in the Los Angeles River’s flood control basin after the heavy Winter 2023 rain storms.

• An Orange County girl was on her way to a basketball game when her family was involved in a car accident. After Orange County Fire Authority responded and ensured everyone was okay, the crew saw the girl’s reaction and concern about missing her big game. Without hesitation, they loaded her in their firetruck and drove her to the game, where her team ultimately won.

Private Donations To Public Entities: Considerations For California Fire Districts

By: Erin Kunze

From time to time, members of the community want to contribute personally to the local agencies that serve them. It comes from a good place! For example, a member of the public may want to donate a vehicle they are no longer using, or show their appreciation for a public service that saved personal property. Perhaps a community member wants to donate money for the agency’s use in furthering the services it provides. Can they do so? And, if so, can they deduct the donation for personal income tax purposes? The answers may surprise you!

I. Deductible Donations, When Use is Restricted for Public Benefit

In general, private donations to governmental units, including states and their political subdivisions, are tax-deductible, but only if a donor makes the donation exclusively for public purposes.1 A political subdivision

1 26 U.S.C., § 170, subd. (c)(1); see also IRS information letter, https://www.irs.gov/government-entities/federal-state-local-governments/governmental-information-letter. The mere fact that a contribution is given to a political subdivision of the State does not in and of itself make the contribution deductible under Section 170. In order for a gift to qualify as a charitable contribution within the meaning of 26 U.S.C. Sec. 170, “the incentive or motive behind the gift must be that of a ‘detached and disinterested generosity’ or that of ‘affection, respect, admiration, charity or like impulses’,” (See Transa- is any division of any State or local government unit that has the right to exercise sovereign powers. This typically includes the power to tax, the power of eminent domain, and the power to police.2 In 1987, the Internal Revenue Services (IRS) recognized a fire protection district as a “political subdivision” largely because of its power to assess taxes, and because it its Board governance structure.3 While these factors may differ between districts, in many cases, they will demonstrate that the agency is a governmental unit, such that donations directed exclusively for the agency’s public purpose are tax-deductible. For more certainty, a district can request a “government information letter,” or a private letter ruling from the IRS to demonstrate its ability to accept tax-deductible contributions.

II. Considerations and Limitations on Accepting Private Donations

A. Limitations on Gifts Benefiting Private Individuals

While the IRS recognizes the deductibility of private donations for public purposes, it prohibits deductions for donations that inure to the benefit of any specific merica Corp. v. U.S. (N.D. Cal. 1966) 254 F.Supp. 504, 514, aff’d (9th Cir. 1968) 392 F.2d 522 [citing Commissioner v. Duberstein, (1960) 363 U.S. 278, DeJong v. Commissioner, (1962) 309 F.2d 373].) See also Denver & Rio Grande Western Railroad Co., v. Commissioner (1962) 38 T.C. 557, 584, finding that the donation of a locomotive by the Railroad Company, “in trust” for the use of the City of Gunnison, placed in a City park for public display, was for an exclusively public purpose within the meaning of the law.

2 26 C.F.R. § 1.103-1.

3 IRS Private Ruling Letter, PLR 8751010 (1987); CHARITABLE GIVING, ¶ 3.03 Qualified Governmental Entities under IRC § 170(C) (1), 2013 WL 4104641, 2.