Financial Benefits

Charitable contributions, in many instances, are tax deductible when donated to an organization qualified by the Internal Revenue Service (IRS).  Your donations qualify for an income tax deduction equal to the fair market value (FMV) of the donated property.

DONATION GUIDE LINES

The Internal Revenue Service (IRS) recognizes a donation to a 501(c)(3) non-profit organization in cash and noncash contributions.  The IRS issued a new rule entitled Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions, on July 30, 2018.  The new ruling draws specific parameters around the term qualified appraisal.  The rule states that appraisals are to be performed by a qualified appraiser according to the Uniform Standards of Professional Appraisal Practice (USPAP). 

QUALIFIED APPRAISAL / QUALIFIED APPRAISER

A qualified appraisal document is prepared by a qualified appraiser in accordance with generally accepted appraisal standards including:  (i) a description in sufficient detail under the circumstances for a person who is not generally familiar with the type of property to ascertain that the appraised property is the contributed property (ii) the condition of the property; (iii) effective date; (iv) fair market value of the contributed property on the valuation effective date; (v) particular use; (vi) date of the contribution to the donee; (vii) name, address and taxpayer identification number; qualifications to the value the type of property being valued, including the appraiser’s education and experience; (viii) statement that the appraisal was prepared for income tax purposes; (ix) A qualified appraisal must be signed and dated by the qualified appraiser no earlier than 60 days before the date of the contribution.  The appraiser is also required to complete Part IV of the Declaration of Appraiser, IRS Form 8283.

FAVORABLE TAX BENEFITS

For purposes of figuring your charitable contribution, capital assets also include certain real property and depreciable property used in your trade or business and, generally, held more than 1 year.  Real property is land and generally anything built on, growing on, or attached to land.  Charitable Contributions, IRS Publication 526