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Tangible Personal Property Donation and Related Use

  • 1.  Tangible Personal Property Donation and Related Use

    Posted 23 days ago
    Hello all,

    I could use your guidance to ensure we handle the donation of a piece of tangible personal property correctly. I'm concerned the potential use of this particular donated property may not be sufficiently related to our mission.  The concept of "related use" seems a bit subjective to me.  Does anyone have any advice on how to proceed or what guidelines I may be able to share with our President and donor to justify my hesitancy or prove related use?

    Thanks,
    Emily


    -- 

    Emily Shubert Burke
    Donor Relations Officer
    Pronouns: she / her / hers

    P.O. Box 35 | Salisbury Cove, ME 04672
    207-288-9880, Ext. 114 | 207-385-3145 | mdibl.org



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  • 2.  RE: Tangible Personal Property Donation and Related Use

    Posted 23 days ago
    The IRS provides information on related and unrelated in Publication 526 and the instructions for 8283s and 8282s.  However, the short answers are:
    • Related Use:  The item can be immediately used in its current state for mission-related activities
    • Unrelated Use:  The item cannot be used for mission purposes in its current state, but it can be sold for cash that can be used for those purposes
    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Tangible Personal Property Donation and Related Use

    Posted 23 days ago
    A good place to learn more about how the IRS has defined related use is here: https://www.pgdc.com/pgdc/tangible-personal-property#:~:text=Related%20Use%20Rule,the%20contribution%20of%20that%20property.

    Related use is pretty broad, and the IRS is reasonably deferential, especially if you document the reasoning. 

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:







  • 4.  RE: Tangible Personal Property Donation and Related Use

    Posted 23 days ago
    Thank you, John and Isaac!  This article has a private letter ruling that is incredibly helpful.

    Thank you for sharing your expertise!
    Emily

    -- 

    Emily Shubert Burke
    Donor Relations Officer
    Pronouns: she / her / hers

    P.O. Box 35 | Salisbury Cove, ME 04672
    207-288-9880, Ext. 114 | 207-385-3145 | mdibl.org