Meeting the Requirements of Making a Donation to a Charitable Organization
This article is designed to help you determine if the items you are donating meet the requirements of the IRS for a Charitable Contribution. Generally, if a claimed deduction for the Fair Market Value of an asset or group of similar assets that have a combined value of $5,000 or more the donor must have a qualified appraisal made by a qualified appraiser. To determine what your deductions is for the assets you are donating you must first determine what the Fair Market Value of the assets are
Fair Market Value as Defined by the IRS:
Fair Market Value. the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. If restrictions are put on the use of the assets donated, the FMV must reflect that restriction.Household Goods & Used Clothing
The Fair Market Value of used household goods & Clothing is usually much lower than the value when the asset was new. Many times these used assets have little or no market value because of condition, style or demand in the market place. Donations made after August 17, 2006 for Household Goods & Used Clothing must be in good or excellent condition.The Appraisals Process
The weight given an appraisal depends on the completeness of the report, the qualification of the appraiser and the appraiser's demonstrated knowledge of the donated assets. The Appraisal must show all the details of the assets, give all the facts that apply on which to base an intelligent judgment of the values of the assets. Photos of the actual asset at the time of the appraisal generally help demonstrate the condition of the asset. The Appraisal must also be signed and dated by a qualified appraiser, be no older than 60 days from the date of the contribution of the assets. The fee charged for the qualified appraisal cannot be based on a percentage of the appraised value of the assetsWho is a Qualified Appraiser
Must have at least 2-years of experience on the trade of business of buying, selling or valuing the type of assets being appraised Must fully describe their qualifications and experience in the appraisal Must regularly prepare appraisal for which they are paid Must demonstrate verifiable education and experience in valuing assets The appraiser has not been prohibited from practicing before the IRS The appraiser is not an excluded individual The appraiser must complete form 8283, Section B, part III
Donating Kitchen & Bath Cabinets - Appliances
There is an overwhelming request for used kitchen & bath cabinets and appliances on the internet and in the general market of most large cities.
Most consumers would prefer to have new high quality cabinets and kitchen appliances but the cost of new high quality cabinets and kitchen appliances is sometimes beyond the reach of most consumers. The used market offers the consumer higher quality cabinets and kitchen appliances at a price that is often more affordable.
For those consumers who are replacing an existing kitchen of bath there is an opportunity to make a charitable contribution by donating their exiting kitchen & bath cabinets and appliances.
Donations must be made to a qualified organization such as nonprofit groups, that are religious, charitable, educational, scientific or that work to prevent cruelty to children or animals.