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GIK question - lease and then own?

  • 1.  GIK question - lease and then own?

    Posted 12 days ago
    Hi,

    We have a constituent that is buying an expensive piece of music equipment today and wants our music department to use it throughout the year, sort of on loan. He then would like to officially donate it as a GIK next calendar year so he can take the deduction on his taxes for 2023. 

    To complicate matters, this same donor mentioned the possibility of using this instrument when he is in town for a music gathering. This seems like it would negate the GIK piece but maybe not if the same instrument was available to others, mainly students, throughout the year and it wasn't guaranteed that this donor would be able to use it when he is in town.

    Any advice?

    Thank you,
    Kelly

    ------------------------------
    Kelly Hallock
    Director of Advancement Services
    Warren Wilson College
    khallock@warren-wilson.edu
    ------------------------------


  • 2.  RE: GIK question - lease and then own?

    Posted 12 days ago
    There is no gift until ownership is transferred.  It is his to "loan" or use until then.

    If, after ownership, the donor requires access to the equipment at any time they want, then they have not relinquished control of the asset, and it is not a gift.

    However, after ownership is transferred, it then becomes yours to do with as you wish.  And, if you wish to lend it out from time-to-time under your conditions, that's your call.

    Get Counsel to draw up an appropriate Deed of Gift to ensure you have full and absolute control over the equipment.

    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: GIK question - lease and then own?

    Posted 12 days ago
    Thank you John!