Hi Deborah,
It’s all mentioned in the instructions for the Form 8283.
https://www.irs.gov/pub/irs-pdf/i8283.pdf
Page 6 states that the appraisal must be made by a qualified appraiser with reference to the appraisal standards, as well as the 60 day requirement.
Also Part III of the form states the requirements of the appraiser. It begins with stating, “ I declare that I am not the donor, the donee, a party to the transaction in which the donor acquired the property, employed by , or related to any of the foregoing persons, or married to any person who is related to any of the foregoing persons.”
Essentially, as the donee, paying for the appraisal could be seen as a conflict of interest. As long as the appraiser is not an employee of your organization or married to an employee of your organization, I don’t believe the law actually forbids the donee from paying for the third-party appraisal as long as it abides by all other regulations. You will need to claim the value of the appraisal service on the tax receipt to the donor as goods/services received in exchange for the gift.
-Eric
Eric F. Valdescaro
AVP, Advancement Services
University of Hawaii Foundation
From: Advancement Services Discussion List [mailto:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG] On Behalf Of Deborah Brown
Sent: Thursday, May 16, 2019 3:15 AM
To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
Subject: [FUNDSVCS] 3rd party estimate for gifts of rare books
Dear Listers:
Can someone quickly confirm the IRS rule regarding 3rd party independent appraisal for gifts of property such as rare books? I specifically wish to confirm that this is a cost to be paid by the donor and this should be done no longer than 60 days before the gift is made.. I would be extremely please to know the IRS code this is outlined in since i will be challenged by well-meaning folk who think we can devise our own internal valuation policy.
Many thanks
Deborah
--
Deborah L. Brown
Associate Vice President for Advancement Services and Administration
The Catholic University of America
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