Collection Management
[an error occurred while processing this directive]Tax Information For Donors
The following information, summarized from Internal Revenue Service publications, answers general questions pertaining to tax deductions for library donors. It is not intended to serve as a complete account of the requirements or limitations covering tax deductible gifts. Donors should consult a tax expert for specific questions about charitable deductions.
Tax Deductible Donations
Generally, the fair market value of a gift of property to a charitable organization is deductible. A gift of books generally is deductible in the amount of the fair market value at the time the gift occurred, except that complimentary or review copies of books received free-of-charge may not be considered a tax deductible gift. The Internal Revenue Service defines fair market value as "the price that property would sell for on the open market…between a willing buyer and a willing seller…having reasonable knowledge of the facts."
Gifts Valued at $5000 or More
The tax law passed by Congress in 1984, with an effective date of January 1, 1985, requires stringent documentation for gifts valued at $5000 or more. If a gift valued at $5000 were given to this institution, or if gifts of "similar items of property" were given to "one or more" institutions and the value of the gifts to all institutions totaled $5000, then special regulations are in effect. These include the following: All "qualified appraisals" must be prepared by a "qualified appraiser." A qualified appraiser is defined as one who is objective, qualified in the field, and unconnected with either the donor or the donee. All appraisal fees for tax purposes, under the law, must be the responsibility of the donor. A copy of the "qualified appraisal" must be attached to the tax return and must include a statement that the appraisal was prepared for income tax purposes. The Libraries requires a copy of the appraisal for our records.
Because these regulations are complex, donors may wish to consult their attorneys or tax consultants.
