Page 168 - Washington Nonprofit Handbook 2018 Edition

qualifications, and note the date of the appraisal and the date
(or expected date) of the taxpayer’s gift.

y The report must state the property’s fair market value on the
date of the gift and describe the valuation method or methods
used in determining that value and the facts used in applying
that method.

• Fourth, an appraisal is not qualified if the appraiser receives a fee
calculated as a percentage of the donated property’s value or a fee
that may vary with the amount allowed as a charitable deduction. See
Treas. Reg. section 1.170A-13(c)(6).

Generally, a separate qualified appraisal is required for each item of
property. See Treas. Reg. section 1.170A-13(c)(3)(iv)(A). However, if a taxpayer
makes two or more gifts of similar items of property to one or more organizations
within a taxable year, one appraisal may cover all of these gifts. A donor must
obtain an appraisal not later than the due date (with extensions) of the return on
which the deduction for the gift is claimed. See Treas. Reg. section 1.170A-
13(c)(3)(iv)(B). A taxpayer must retain an appraisal for so long as it may be relevant
in the administration of any internal revenue law. See Treas. Reg. section 1.170A-
13(c)(3)(iv)(C).

(iii) IRS Form 8283

Donors must report noncash gifts in excess of $500 on Form 8283, which is
attached to donor’s tax return. The donor must provide information on the type

and amount of the gift, including a description of property, the date of gift, the date
the property was acquired by the donor, how the property was acquired, the
donor’s cost or other tax basis, and the fair market value of the property and how it
was determined. Schedule B to the form is an appraisal summary of the qualified
appraisal required for donated property of $5,000 or more (except for publicly
traded securities).

c. Acknowledgment Requirement for Donee Organizations

A contribution of $250 or more is not deductible unless the taxpayer
substantiates the contribution by a contemporaneous written acknowledgment of
the contribution by the donee organization. See Code section 170(f)(8)(A). If the
taxpayer gives $250 or more to an organization more than once during a particular
year, the deduction for gifts may be substantiated by one acknowledgment

WASHINGTON NONPROFIT HANDBOOK -157- 2018