Gifts-in-kind are non-cash donations. These can include tangible assets such as real estate, equipment, furniture, artwork, personal collections, software, licensing, cars, boats, planes, and so much more. These can also include intangible and intellectual property such as patents, trademarks, and copyrights. Gifts-in-kind can be put to immediate use to support the University’s mission or when appropriate can be converted into cash.
All non-cash contributions valued at more than $500 require the filing of IRS Form 8283 – Non-Cash Charitable Contributions. The donor may have to complete section A, Section B or both, depending on the type of property donated and the amount claimed as a deduction.
A gift-in-kind requires an official transfer of ownership of property from the donor to the Foundation. The IRS requires the donor to determine the fair market value of the gift for individual, foundation, or corporate tax reporting purposes. TUC will issue a gift in kind receipt consisting of a simple description of the donated property. TUC will recognize the donor for the value of the gift without referencing or receipting a specific dollar amount.
TUC is required to provide an acknowledgement for non-cash gifts that may include a description but not the value of the item(s). If your gift is valued in excess of $5,000, TUC will ask you to provide a qualified written appraisal. You may request that TUC complete your portion of IRS Form 8283 to confirm receipt of the non-cash gift. If the University disposes of a gift-in-kind within three years, it must file IRS Form 8282 with the IRS and send a copy of the form to the original donor. We encourage you to see professional tax counsel to answer any questions and provide you with assistance when preparing your personal tax returns. Acceptance of a gift in kind is made by the Office of Institutional Advancement. If your gift involves special or unique handling or requires a consequent use of TUC’s resources such as personnel costs, storage facilities, set-up costs or license fees TUC may require a written agreement between you and the University.
Corporate gifts in kind of $25,000 or more should be substantiated by a list of the donated property, inventory or equipment along with a record of software and the length of or type of licensing provided with a value for any annual support agreements. The substantiation may be in the form of signed correspondence from the corporation.
Gifts of vehicles boats and airplanes require that IRS Form 1098C be completed by the University and sent to both you and the IRS.
It is important to note that all of the requirements we have outlined have specific deadlines and equally severe consequences if the regulations of the IRS’s are not met. Not only will your charitable tax deductions be put at risk but failure to comply could lead to TUC being financially penalized up to the value of the gift AND TUC could lose its status as a charitable institution.