Gift-in-Kind Donation(s) - IRS Form 8283

Options
Sheila Wortham
Sheila Wortham ✭
Ancient Membership
in Blackbaud Raiser's Edge NXT®: General Discussion

How does your organization handle IRS tax Form 8283?  Currently our organization does not complete tax form 8283 for in-kind donations that exceeds the value of  $5,000.  Within the organization there are mix reviews on when a donor should receive this form.  My instructions to our CFO is to send to anyone who contributes $5,000 or more in-kind donations annually.    Our portion will be completed prior to mailing the donor; the donor in turn completes their portion to submit to the IRS. Other staff suggested  all in-kind donations should  receive this form along with their acknowledgment letter  regardless of the value.  She believes by doing so no one would be forgotten.  Would this be the responsibility of the development department or finance department to complete the form and mail to the donor?

Tagged:

Comments

  • JoAnn Strommen
    JoAnn Strommen ✭✭✭✭✭
    Ancient Membership Facilitator 4 Name Dropper Photogenic
    Sheila Wortham:

    How does your organization handle IRS tax Form 8283?  Currently our organization does not complete tax form 8283 for in-kind donations that exceeds the value of  $5,000.  Within the organization there are mix reviews on when a donor should receive this form.  My instructions to our CFO is to send to anyone who contributes $5,000 or more in-kind donations annually.    Our portion will be completed prior to mailing the donor; the donor in turn completes their portion to submit to the IRS. Other staff suggested  all in-kind donations should  receive this form along with their acknowledgment letter  regardless of the value.  She believes by doing so no one would be forgotten.  Would this be the responsibility of the development department or finance department to complete the form and mail to the donor?

    Sheila,

    I know there are differing regulations for GIK and GIK when it's a vehicle of any type.  I suggest you post your question or search the archives at the fund services website.  Their audience of fundraisers in the non-profit sector  is much broader than RE users and there are very knowledgeable posters there.  Their web site is www.fundsvcs.org. 

    If I were you I would ask the accountant/auditor for your organization for their recommendations. I tend to take my IRS related questions that direction. I'm thinking the IRS publications probably define when form is needed and when it's not.

  • Cathy Allen 2
    Cathy Allen 2 ✭
    Ancient Membership Photogenic First Reply
    Sheila Wortham:

    How does your organization handle IRS tax Form 8283?  Currently our organization does not complete tax form 8283 for in-kind donations that exceeds the value of  $5,000.  Within the organization there are mix reviews on when a donor should receive this form.  My instructions to our CFO is to send to anyone who contributes $5,000 or more in-kind donations annually.    Our portion will be completed prior to mailing the donor; the donor in turn completes their portion to submit to the IRS. Other staff suggested  all in-kind donations should  receive this form along with their acknowledgment letter  regardless of the value.  She believes by doing so no one would be forgotten.  Would this be the responsibility of the development department or finance department to complete the form and mail to the donor?

    Hi Sheila,

     here is how we handle that situation:  We believe that if the donor wants this type of documentation because they believe their in kind gift is valued at that level, then it is their responsibility to obtain and complete the form.  See a paragraph from our in kind gift processing procedure: 

    For Donated Property valued at $5,000 and above, when the donor delivers the item, he/she will also arrive with form IRS 8283 with parts I and II of the form ALREADY COMPLETED. A Nemours representative, (most likely one of the Partnership staff) will then complete part IV of the form and sign it, keeping a signed copy for our records.

    <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
     

    If Nemours sells any donated property accompanied by form 8283 within 3 years of receiving it from the donor, we must then file IRS form 8282.

    Cathy Johnson

     

Categories