FundSvcs Community

 View Only

  • 1.  Appraisal Needed for GIK?- All Individual Items Valued Less $5K but Total Over $40K

    Posted 07-09-2025 04:00 PM

    Greetings AASP,

    My institution just received a large in-kind donation of medical items from a hospital going out of business.  The individual items are valued between $20 - $4K each and the total value provided exceeds $40K.  We received both one offs of certain items like specialty scanners ($4K) and groups of other like items like multiple hospital beds (valued at $1K each).  Individually all of the items are under the $5K threshold for needing an appraisal but as a group they far exceed the limit. 

    Can anyone help us understand if we need to get an appraisal of some or all of this?



    ------------------------------
    Tatiana Walzer
    University of Saint Francis
    twalzer@sf.edu
    ------------------------------


  • 2.  RE: Appraisal Needed for GIK?- All Individual Items Valued Less $5K but Total Over $40K

    Posted 07-09-2025 04:12 PM
    Groups of similar items are combined for the purpose of the appraisal threshold, so you will need an appraisal for the entire collection. You should ask the appraiser to provide an itemized valuation. 

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:






  • 3.  RE: Appraisal Needed for GIK?- All Individual Items Valued Less $5K but Total Over $40K

    Posted 07-09-2025 04:37 PM
    You never need an appraisal. It is only the donor who may need to obtain one (or several). 

    Even if the value exceeds the IRS threshold as established for Form 8283 ($5,000 for the item, unless several items constitute a "collection"), the donor may still decide not to pursue a deduction. That is the donor's decision. 

    We should never advise a donor on what they need to do for tax purposes. Although when it comes to GIKs, I always tell donors, "You may need to obtain an appraisal and file form 8283 to claim a deduction. Please seek guidance from your tax advisor."

    So, I would say the same thing to this donor. Don't tell them what they need (or don't need) - other than to consult with their tax professional.

    BTW, even if they do obtain an appraisal, we cannot demand a copy of that. It's not our business. Additionally, there are other methods for determining a value for recording purposes.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 4.  RE: Appraisal Needed for GIK?- All Individual Items Valued Less $5K but Total Over $40K

    Posted 07-09-2025 04:58 PM

    Hi John,

    Thanks as always for your feedback.  Tag on question.  The Business Office wants to record this gift in kind on the books with a donor provided value of $40K.  We have an itemized list from the donor with their assigned value for each item.  Would this be sufficient for my institution to enter the gift? 



    ------------------------------
    Tatiana Walzer
    University of Saint Francis
    twalzer@sf.edu
    ------------------------------

    Original Message


  • 5.  RE: Appraisal Needed for GIK?- All Individual Items Valued Less $5K but Total Over $40K

    Posted 07-09-2025 05:07 PM
    As long as you do not put those values on the receipt!

    I prefer to use an independent value whenever possible. Donorsnoften have an inflated idea of what stiff is worth.

    The CASE Standards suggest as much. But if the estimates are good enough for the Business Office, that is what is most important!

    John

    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard





    Original Message


  • 6.  RE: Appraisal Needed for GIK?- All Individual Items Valued Less $5K but Total Over $40K

    Posted 07-09-2025 05:04 PM

    We are also a little unclear of what constitutes a collection and who makes that determination.  All the items are medical in nature but range from very simple supplies up to complex equipment.  



    ------------------------------
    Tatiana Walzer
    University of Saint Francis
    twalzer@sf.edu
    ------------------------------

    Original Message


  • 7.  RE: Appraisal Needed for GIK?- All Individual Items Valued Less $5K but Total Over $40K

    Posted 07-09-2025 05:08 PM
    The DONOR and their tax people make this determination. Not you.

    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard





    Original Message


  • 8.  RE: Appraisal Needed for GIK?- All Individual Items Valued Less $5K but Total Over $40K

    Posted 07-09-2025 11:03 PM
    You should not rely entirely on the donor to value a gift, ideally. Though John is right that an appraisal is only required for the donor, the recipient must still make a fair market valuation too. When the value of the goods is difficult to determine from things like comparable sales, an appraisal can be the best option. Assuming the donor is using an independent and qualified appraiser, both you and the donor may rely on that valuation. 

    Your gift acceptance policy may have some additional guidance for you on this question, too. 

    Isaac Shalev
    Data Strategy Expert
    (917) 859-0151
    isaac@sage70.com

    Autocorrect was used in composting this email, please excuse any typos




    Original Message


  • 9.  RE: Appraisal Needed for GIK?- All Individual Items Valued Less $5K but Total Over $40K

    Posted 07-10-2025 07:50 AM

    Thank you both for the thoughtful and speedy feedback.  This was a big help.  



    ------------------------------
    Tatiana Walzer
    University of Saint Francis
    twalzer@sf.edu
    ------------------------------

    Original Message


Related Content