IRS rules for non-cash gifts and Form 8283
Updated
A non-cash gift is a gift of property, not money. This page sets out what the IRS says about it and which parts are on the charity and which are on the donor. The sources are Publication 1771 (opens in a new tab), Publication 526 (opens in a new tab), Publication 561 (opens in a new tab) and Form 8283 (opens in a new tab) with its instructions.
This page is not tax or legal advice. The donor's deduction, valuation and tax forms are the donor's responsibility. Point donors to the IRS or their own tax adviser.
What these rules don't cover
Publication 1771 says its rules don't apply to a donated motor vehicle, boat or airplane if the claimed value is more than $500, and points to Publications 4302 and 4303 for vehicle donations. Publication 526 says a donor of a vehicle, boat or airplane may have to attach Form 1098-C. FreeCharityReceipts has no vehicle-specific features.
What the charity's acknowledgment says
For a gift valued at $250 or more, the IRS says the acknowledgment contains the organization's name and a description, but not the fair market value, of the property. It also says either that no goods or services were provided, if that is the case, or, if some were, their description and a good faith estimate of their value, or, if only intangible religious benefits were provided, a statement saying so. See What an IRS written acknowledgment must contain.
Publication 1771 says donors are responsible for getting that acknowledgment for any single non-cash contribution valued at $250 or more, and that additional substantiation may apply depending on the property and the claimed value.
Who values the property
The IRS puts valuing donated property on the donor. Publication 561 defines fair market value as the price property would sell for on the open market: the price agreed between a willing buyer and a willing seller, neither required to act, both with reasonable knowledge of the relevant facts. The form says: "Per IRS guidelines, the donor is responsible for determining the fair market value of non-cash contributions."
The donor's steps by size of deduction
These are Publication 526's rules for a donor who claims a deduction for a non-cash gift. They are the donor's duties, not conditions on the charity's receipt.
| The donor's deduction for the item | What the IRS says the donor needs |
|---|---|
| Less than $250 | A receipt from the charity showing its name and address, the date and location of the contribution, and a description of the property. If getting a receipt is impractical, such as at an unattended drop site, reliable written records can do. |
| At least $250, not more than $500 | A written acknowledgment from the charity, received on or before the earlier of the date the donor files the return or its due date including extensions. |
| Total for all non-cash gifts over $500 | Form 8283 attached to the return. Section A covers items with a deduction of $5,000 or less per item (or group of similar items), and publicly traded securities. |
| Over $500, not over $5,000 | The acknowledgment above and a completed Form 8283, Section A. |
| Over $5,000 | The acknowledgment, a qualified written appraisal from a qualified appraiser, and Form 8283, Section B. |
Publication 526 says that in working out whether a deduction is over $500, similar items donated to any qualified organization during the year are combined, and for the $5,000 figure, all items in a group of similar items count even if given to more than one organization (each organization still gets its own Section B).
Publication 526 notes exceptions to the appraisal rule, including publicly traded securities, certain inventory, certain intellectual property and qualified vehicles with an acknowledgment. It also says a deduction over $500,000 for property needs the qualified appraisal attached to the return, and that the IRS may disallow a non-cash deduction over $500 if Form 8283 isn't submitted. There are further rules for vehicles, clothing and household items not in good used condition, and conservation gifts.
What this means for the charity
- For Form 8283, Section B, Publication 526 says the organization that received the property must complete and sign Part V. FreeCharityReceipts doesn't produce Form 8283 or sign it. That is a separate step you do yourself.
- Publication 526 says an organization must file Form 8282 if, within 3 years of receiving property for which it was required to sign a Form 8283, it sells, exchanges, consumes or otherwise disposes of it, and it must also send the donor a copy of the form. There are exceptions, which Publication 526 describes. FreeCharityReceipts doesn't handle this.
What FreeCharityReceipts does
- A non-cash receipt prints the description you enter and no appraisal, valuation-method or value rows. The Donor-declared value ($) you enter is for your records only and is not printed, so the receipt describes the property without valuing it, as the IRS says. If you also choose Option B (still 2 credits in total), the goods or services description and your estimate of their value print in the Option B statement at the foot. See Non-cash receipts.
- It doesn't collect or keep an appraisal, invoice or photo, and it doesn't check whether an item needs an appraisal.
- It has no field for the location of the contribution or the appraiser's details, and it doesn't print them.
- It doesn't tell the donor which form applies. A non-cash receipt costs 2 credits, or is covered by a pass. See Credits and passes.
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