Gifts in Kind
Gifts in kind include donations of property other than cash and marketable securities such as real estate, works of art, books, equipment, furnishings, software and licensing.
A gift in kind requires an official transfer of ownership of property from the donor to the Foundation. The IRS requires the donor to determine the fair market value of the gift for individual, foundation, or corporate tax reporting purposes. The Foundation will issue a gift-in-kind receipt consisting of a simple description of the donated property. The Foundation will recognize the donor for the value of the gift without referencing or receipting a specific dollar amount.
Gifts in kind that have a fair market value of more than $5,000 require the completion of IRS Form 8283. Acceptance of a gift in kind is made by officials at The Foundation of Forsyth Tech. Further, gifts in kind that involve unique handling provisions or require a consequent use of College resources such as personnel costs, storage facilities, set-up costs or license fees may require a written agreement between the donor and the College.
Corporate gifts in kind of $25,000 or more should be substantiated by a list of the donated property, inventory or equipment along with a record of software and the length of or type of licensing provided with a value for any annual support agreements. The substantiation may be in the form of signed correspondence from the corporation. The fair market value, as determined by the corporation, will be the dollar amount which is booked for recognition purposes.
It is the practice of the College to transfer ownership of gift-in-kind assets to the College unless directed otherwise by the donor and Forsyth Tech.
How to Give a Gift in Kind
The asset must be placed in the physical possession of Forsyth Tech or The Foundation of Forsyth Tech.
A College development representative will assist in this process, allowing the donor to determine fair market value and fill in the description of the gift in the space provided. IRS regulations require the donor to determine the fair market value. For corporate gifts of $25,000 or more, a letter from a representative of the corporation stating the fair market value with an accompanying inventory of the donated property is acceptable.
When the fair market value is over $5,000, the donor is required to fill out IRS form 8283, attach a qualified appraisal when instructed and complete the form by a signed declaration of appraiser. The exception to this is C Corporations. The completed paperwork can be given to your college or unit contact who will then forward it to The Foundation of Forsyth Tech where the transaction will be acknowledged and receipted. The IRS Form 8283, which is acknowledged by the Foundation, will be returned to you with the gift receipt. The Foundation recommends that the donor consult with his/her tax advisor to determine the appropriate tax consequences of any charitable contribution.
The Foundation-issued gift receipt will make no reference to the fair market value of the gift in kind, only a brief description of the donated property. The Foundation will record the fair market value for recognition purposes only.
Any gift in kind that is determined by Forsyth Tech officials to be inappropriate for permanent preservation may be disposed of by the College.
If you have questions or would like more information on making a gift in kind to Forsyth Tech, contact Angela Bryant at 336.734.7618 or at firstname.lastname@example.org.