74T H C ONGRESS . SESS. II. CH. 690 . JUNE 22, 1936 . prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying On propaganda, Or otherwise attempting, to influence legislation ; (3) the special fund for vocational rehabilitation authorized by section 12 of the World War Veterans' Act, 1924 ; (4) posts or organizations of war veterans, or auxiliary units or societies of any such po sts or organizations, if such posts, organizations, units, or societies are organized in the United States or any of its possessions, and if no part Of their net e arnings inures to the benefit Of any private shareholder or individual
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(5) a fraternal society, order, or association, operating under the lo dge s ystem, but o nly i f such contr ibuti ons or gifts are to be used exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals ; to an amount which in all the above cases combined does not exceed 15 per centum of the taxpayer's net income as computed without the benefit of this subsection . Such contributions or gifts shall be allowable as deductions only if verified under rules and regulations prescribed by the Commissioner, with the approval of the Secretary . (For unlimited deduction if contributions and gifts exceed 90 per centum of the net income, see section 120 .) (p) PEN SION T RU STS .-An empl oyer establishing or maintain ing a pension trust to provide for the payment of reasonable pensions to his employees (if such trust is exempt from tax under section 165, relating to trusts created for the exclusive benefit of employees) shall be allowed as a deduction (in addition to the contributions to such trust during the taxable year to cover the pension liability accruing during the year, allowed as a deduction under subsection (a) Of this s ectio n) a reaso nable amo unt t ransf erred Or p aid i nto s uch trust during the taxable year in excess of such contributions, but only if such amount (1) has not theretOfore been allowable as a deduction, and (2) is apportioned in equal parts over a period of ten consecu- tive years beginning with the year in which the transfer or payment is made . Any deduction allowable under section 23 (q) of the Revenue Act Of 1928 or the Revenue Act of 1932 Or the Revenue Act of 1934 which under such section was apportioned to any taxable year beginning after December 31, 1935, shall be allowed as a deduc- tion in the years to which so app ortioned to the extent allowab le under such section if it had remained in force with respect to such year. (q) CHARITABLE AND OTHER CONTRIBUTIONS BY CORPORATIONS .- In the case of a corporation, contributions Or gifts made within the taxable year to or for the use of a domestic corporation, or domestic trust, or domestic community chest, fund, Or foundation, organized and operated exclusively for religious, charitable, scientific, literary, o r educ ation al pur poses Or th e prev ention of c ruelty to ch ildre n (but in the case Of contributions Or gifts to a trust, chest, fund, or founda- tion, only if such contributions Or gifts are to be used within the United States exclusive ly for Such purposes), no part Of the net earn- ings of which inures to the benef it of any private shareholder Or individual, and no subs tantial part of the activities Of which is car- rying on propaganda, or otherwise attempting, to influence legisla- tion ; to an amount which does not exceed 5 per centum of the tax- p ayer's net income as co mpute d with out th e ben efit o f this subs ection . Such contributions or gifts shall be allowable as deductions only if verified under rules and regulations prescribed by the Commissioner . with the approval of the Secretary. Vocational rehabili- tation . Vol.43,p.611. War veterans' organ- izations, etc. Fr aternal societies, etc . Limit . 1661 Unlimited deduc- tions. Post, p . 1695. Mainten ance of pen . sion trusts . Post, p . 1707. Allowances under previo us laws . Vol . 45, p.802; Vol. 47, p. 182; Vol. 48, p. 691 . Charitable, etc ., con- tributions by corpora- tions .
