Gift-in-kind receipting

Melina Abraham

I am new to RE. A donor just let me know that their GIK receipt that I sent them does not include a value amount? Can anyone help me figure out how to fix their receipts?

JoAnn Strommen

@Melina Abraham
While some orgs do include an amount, we do not. We include a detailed description of the donation: item, brand, quantity, size, new/used condition, and even model/serial # if known, etc. It can be hard to determine a fair market value for items. We have had cases where there has been an appraisal and can include that 'appraisal by ABC valued donation at $XX. If donor is insistent, I once included a statement like ‘valued by donor at $X’ to satisfy them.

We acknowledge all but do not put a value. If you didn't put a description I would add that. Is it significant enough to require an appraisal? If you feel you have to put a value I would say it's the value determined by the donor.

This is from IRS Pub 1771: (other pub mentioned has info too)

Noncash Contributions Noncash contributions are contributions of property that do not meet the definition of monetary contributions, above. Just as is the case for monetary contributions, donors are responsible for obtaining a contemporaneous written acknowledgment from a charitable organization for any single noncash contribution valued at $250 or more before donors can claim a charitable deduction on their federal income tax returns. Additional substantiation requirements may apply to noncash contributions. These requirements can be complicated. They depend on the type of property contributed and the claimed value of the property contributed. See Form 8283 and its instructions as well as Publication 526 for additional information.

My 2 cents.