Rev. Rul. 78-129

Rev. Rul. 77-232, 1977-2 C.B. 71 holds that contributions made to an integrated State Bar by members and other donors are not deductible as charitable contributions as defined in section 170(c)(1) of the Internal Revenue Code of 1954. Similarly, such contributions are not deductible for Federal estate tax and gift tax purposes under the provisions of sections 2055(a)(1) and 2522(a)(1).

Rev. Rul. 77-232 states that, under the authority contained in section 7805(b) of the Code, the Revenue Ruling will not be applied to contributions made to the State Bar prior to July 5, 1977, the date the Revenue Ruling was published in the Internal Revenue Bulletin.

Held, if prior to July 5, 1977, a taxpayer made a pledge to the State Bar that is a legally enforceable obligation under local law, the satisfaction of the pledge on or after July 5, 1977, will be a contribution deductible in the manner and to the extent provided in section 170 of the Code. Similarly, the satisfaction on or after July 5, 1977, of such legally enforceable pledge made prior to that date will be deductible for Federal estate tax and gift tax purposes under the provisions of sections 2053(a)(3) and 2522(a)(1), if the requirements of those sections are otherwise met. A bequest or devise to the State Bar by a decedent who died prior to July 5, 1977, will be deductible for estate tax purposes under the provisions of section 2055(a)(1), provided that the other requirements of that section are met.

Rev. Rul. 77-232 is amplified.