Rev. Rul. 55-192

Advice has been requested whether amounts paid as membership dues to a social club and distributed to qualified charities under the circumstances set forth below would constitute allowable deductions to the members within the meaning of section 23(o) of the Internal Revenue Code of 1939.

The rules of the instant club provide that each member shall pay dues of 100 x dollars annually. Of this amount 30 x dollars is in payment of two tickets to a dinner-dance and 70 x dollars constitutes a direct contribution by the member to organizations, contributions to which are deductible under the provisions of section 23(o) of the Code. Checks in payment of dues are made payable to the treasurer of the club, who has been authorized both by the club and the donee organization to act as agent to receive members' contributions for such purposes.

Section 23(o) of the Code provides, in part, that in computing taxable net income there shall be allowed as deductions in the case of an individual `contributions or gifts payment of which is made within the taxable year to or for the use of * * * a corporation, trust, or community chest, fund or foundation * * * organized and operated exclusively for religious, charitable, scientific or educational purposes * * *.'

Section 39.23(o)-1 of Regulations 118 provides that a deduction is allowable under section 23(o) of the Code only with respect to contributions or gifts which are actually paid during the taxable year, regardless of when pledged and regardless of the method of accounting employed by the taxpayer in keeping his books or records.

Contributions made by members of the social club under the foregoing arrangement and paid over to organizations which are of the type set out in section 23(o) of the Code constitute allowable deductions to the members in computing their taxable net income in the manner and to the extent provided by that section. Contributions received by the treasurer who is also acting as agent of such donee organizations, will be deductible by the donors at the time such contributions are paid to him. However, if the treasurer has not been designated by the organization involved to act as its agent, he is considered to be the agent of the contributor. Accordingly, in that case such contributions are deductible only in the taxable year in which they are actually transferred to the donee organization