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Free Rides on Train - Gift of Service or Gift in Kind?

  • 1.  Free Rides on Train - Gift of Service or Gift in Kind?

    Posted 15 days ago

    Good morning!

    One of our donors owns a train, and frequently provides free rides when we have special events. Generally, the rides are scheduled, they are not giving us tickets, which we can then provide to our constituent base, although I believe event attendees have to register.
    Someone asked if these could be entered as gifts in kind. I believe these are gifts of service. There is no product, the value is all in the train ride itself and the work behind it.
    1. If, at an event, a group of people can take a train ride, would this be considered a gift of service?
    2. If, the donor provided us tickets in advance to be used at any time which we could give away to constituents, would those be considered gifts in kind? (As the donor owns the train, would providing tickets fall under partial interest?)

    Thanks!

    -Hillary



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    Hillary Cote
    Fort Lewis College
    hlcote@fortlewis.edu
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  • 2.  RE: Free Rides on Train - Gift of Service or Gift in Kind?

    Posted 15 days ago
    This would be a partial interest gift (see IRS Publication 526). There is no deductible value.

    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






  • 3.  RE: Free Rides on Train - Gift of Service or Gift in Kind?

    Posted 15 days ago
    Hillary, can you elaborate? Do you mean that the donor owns a private rail car that is attached to, eg, an Amtrak train? 

    I believe that there are two aspects to the gift. First is the usage of the train car itself, which is comparable to a hotel room. This is a partial interest gift, with no deductible value. The second is the ride, which is being provided via Amtrak or whomever, and is presumably paid for by the donor. It is possible that this aspect of the contribution is a gift -- and is certainly at least an unreimbursed expense as a result of rendering services to a nonprofit. 



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    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
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  • 4.  RE: Free Rides on Train - Gift of Service or Gift in Kind?

    Posted 15 days ago

    Hi!

    This is a historic/vintage train, and the owner owns the whole train - engine to caboose. (I believe the railroad tracks and property as well.) So the donor gives the train cars and the rides.



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    Hillary Cote
    Fort Lewis College
    hlcote@fortlewis.edu
    ------------------------------