Gifts in Kind
Gifts-in-kind are non-monetary items of tangible personal property such as art, property, collectibles, equipment, automobiles, inventory, and other personal assets or materials that represent value to PACTT. We welcome many gifts-in-kind and are most grateful when donors think of us with this form of philanthropy. However, gifts-in-kind can also present PACTT with issues of liability and extended budget issues. Therefore, it is appropriate that there be guidelines for the acceptance of gifts-in-kind and that both donors and PACTT have an awareness and understanding of any ramifications of such a gift may present. Unreimbursed expenses such as food, professional services, and limited use of private property are not considered tax-deductible, charitable gifts-in-kind by the Internal Revenue Service.
When offered a gift-in-kind, PACTT may choose either to use or sell the gift-in-kind property or to decline the gift. When evaluating the acceptance of gift-in-kind, the PACTT will consider if the gift is needed, wanted, and/or has use within the scope of our mission or if it can be sold to benefit PACTT. Consideration will be given to the cost of accepting the gift (e.g., shipping and handling costs, installation charges, licensing fees, etc.), the long-term viability of the gift (e.g., maintenance costs, associated personnel needs, storage fees, insurance rates, copyright issues, etc.), and the resale market if the gift is to be sold. Some gifts, of course, will require paperwork documenting ownership (e.g., a signed title for a house, car or boat).
If PACTT accepts a gift of this type, then the donor of the gift-in-kind may claim a charitable deduction for the fair market value of the gift if it is accepted for PACTT’s exempt purposes. If a gift-in-kind will not be used for the PACTT’s exempt purposes, a deduction can only be claimed for the property's cost basis (usually the original amount paid by the donor for the property).
For more information contact:
PACTT Development Office