Software - Gift-in-Kind?

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We just received a gift of Software that the donor assessed the value at $19M. Do you consider gifts of software as a Gift-in-Kind? How should it be entered in R.E. What documentation should be required of the donor to support the gift (GIK) and the reduced annual fee? Any recommendations are greatly appreciated.

Comments

  • This is something that (since not RE specific) I recomment asking the folks at the FUNDSVCS listserv.. Even checking their archives because these things are discussed often. I am leaning toward remembering that they are not gift since you do not OWN the rights to the software just use of the software. But I am no expert - talk to the gift processing experts at FUNDSVCS.
  • Theresa Dougherty:

    We just received a gift of Software that the donor assessed the value at $19M. Do you consider gifts of software as a Gift-in-Kind? How should it be entered in R.E. What documentation should be required of the donor to support the gift (GIK) and the reduced annual fee? Any recommendations are greatly appreciated.

    We would record it as an in-kind gift and require that the donor either fill out a form or provide us with a statement clearly listing the donated items, services, etc. When we thank them we use the language, "Thank you for your donation of the XXXXX, which you valued at $XXXXX."

  • We always did what Sunshine mentioned...partly because two of us came from a museum, where we were prevented by org policy for valuing in-kind gifts because of rules regarding donations to the collections of the museum.


    This text was in the receipt box at the bottom of the acknowledgement letter:

    Standard fundraising practices do not permit us to provide a donor with valuation of a gift-in-kind; please consult your tax advisor on IRS requirements.  However, we are pleased to recognize you commensurate with a gift of $XXXX, based on the value you reported.

     

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