Special Rules Regarding Gifts In Kind
There are special IRS rules pertaining to gifts in kind for the recipient nonprofit and the donor.
The recipient nonprofit organization can only acknowledge the date of receipt, description of the property, and its standing as a public charity eligible to receive donations from the public. The assertion of the value of the property rests entirely on the donor.
The donor claiming a charitable deduction must comply with several steps. For any property donated with a purported value > $5,000, certain formalities must be followed in order to support the claiming of the charitable deduction by the donor. These formalities fall to the donor to ensure full compliance and are summarized in the following steps: Continue reading Special Rules Regarding Gifts In Kind