I continue to check the IRS website for an updated 561. Nothing yet. However, I was reminded of a fact when I looked at least years'.
Both directly and on this list I routinely hear people claiming that a donor's CPA demanded a value on the in-kind receipt because the IRS requires it. We all know is not true per IRS Publication 1771.
However, I had forgotten that Publication 561 - which is written for the donor and not the nonprofit - articulates the lack of valuation as well.
From pages 8 and 9 of the January 2023 561, here is the related quote (by the way, CWA stands for Contemporaneous Written Acknowledgement). As an aside, I have been questioned about whether QPQs should be valued on GIK receipts since you cannot show the property value. Yes, you must. I have highlighted both relevant sections:
"CWA. You must get a CWA from the charity to which you contributed property on or before the earlier of the date on which you file a return re porting the donation or the due date (including extensions) for filing such return. The CWA must include a description (but not value) of the property donated and whether the charity gave you any goods or services in exchange for the property you donated. If the charity did give you any goods or services, the CWA must contain a description and good faith estimate of goods or services provided. Goods and services do not include intangible religious benefits that are not sold in a commercial setting."
John H. Taylor, PrincipalJohn H. Taylor Consulting, LLC
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