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  • 1.  Equipment Donations

    Posted 01-02-2024 11:06 AM

    I have in-kind donation of used medical equipment, purchase dates of equipment were 2017, 2022, and 2023.  Donor has invoices for equipment purchased in 2022 and 2023 but not 2017.  The 2017 equipment purchase was donated in 2017 but donor never completed paperwork for in-kind donation and now adding it to the other two equipment purchases.  We do have confirmation that all items listed were received.  Donor provided personal letter listing all three pieces of equipment and values for each. The donor will be completing form 8283.  Questions:

    1. Is it solely on the donor to provide FMV of items donated?  Do we need proof of the FMV listed by the donor (appraisal) for the equipment from 2022 and 2017?  It appears the donor is using value of when they purchased the equipment, no adjustment for depreciation.
    2. For equipment donated in 2017, should this be a separate in-kind gift?  Any issues with adding as a total?
    3. It appears donor may have included tax and shipping fees to the totals. This is not allowed, correct?

    Thank you!



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
    ------------------------------


  • 2.  RE: Equipment Donations

    Posted 01-02-2024 12:21 PM
    The donor must determine and prove the deductible value for IRS purposes. Your receipt must NEVER reflect a value.

    For your internal purposes, it is best to obtain an independent valuation. You might wish to seek advice from your CFO.

    Each item should be recorded separately. I would include a note on the comment line for each mentioning the manufacturing date. For the "old" gift you should ask the Gift Acceptance Committee whether anything should be counted this many years later.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 3.  RE: Equipment Donations

    Posted 01-02-2024 12:35 PM

    Thanks, John.  Later found out all the equipment was actually new in box, the purchase from 2022 must have been in storage.  The donation from 2017 was also new equipment, but donor did not submit in-kind at that time.  Are you saying that perhaps it shouldn't be "counted", but would still provide the donor with signed in-kind and 8283?



    ------------------------------
    Dena Toth
    Medical University of South Carolina Foundation
    tothd@musc.edu
    ------------------------------

    Original Message


  • 4.  RE: Equipment Donations

    Posted 01-02-2024 12:46 PM
    Dena, the 2017 contribution is a bit of a problem. Even if you failed to provide a receipt to the donor at that time, I don't know if there is any remedy available to the donor -0 the burden is on them to obtain a contemporaneous receipt. If you in fact provided a receipt, but the donor didn't claim a deduction or file the 8283 then perhaps they can amend their 2017 tax return - they will need to consult their own advisor. But the donation can't simply be applied to 2023 - it was made in '17, and the 8383 form will ask you on what date the property was received. An 8283 is intended for gifts made in a single taxable year, so you can't lump it in with the other contributions.





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  • 5.  RE: Equipment Donations

    Posted 01-02-2024 12:54 PM
    The 8283 is the donor's responsibility. If they provide one, you can sign it acknowledging receipt of the equipment and the date you took ownership. That's highly unlikely now for the 2017 donation. But do not prepare any 8283. Only sign one if provided to you. If and when that is presented, you will need to reflect the acceptance date (2017).

    Internally, the fact you did not record or count something six years ago should be discussed by your GAC. For VSE purposes you are supposed to only count that which is given in the current year. However, some institutions may opt to count it anyway. That's a leadership decision. However, if you are in a new campaign now and were not in a campaign when the item was given, I'd definitely not add this to the current campaign totals.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


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