See the bottom of the page for important attached documents! IRS Documents: Donor Guide (see attached below) Receiver's Guide (see attached below) The UW's donor document: http://uwfoundation.org/ways_giving/inkind.pdf This is a brief one-page document given out by UW that briefly describes donations and the tax documentation required. It is also attached below. Donations in brief: OurTax ID number is 23-7087845. For donations less than $5,000 all that is required is an acknowledgment letter--we need a Release of Interest letter from the owner and we send a Thank-You letter in return. Examples of these letters can be found below. If it is over $5,000 then thereis additional paperwork for us to sign on the donor's taxes. We mustkeep a donation for 3 years to avoid tax implications for the donor.Please read the documents for a better, and more complete, understanding. GiftMatch Donations These donations are from employees of companies such as Microsoft that will "match" any monetary donation their club makes. See the Program Director's page on "GiftMatch Donations" to see how to deal with these. In brief, you log into the GiftMatch website corresponding to the company and somehow "accept/acknowledge/approve" the donation. Appraising the value of a donation: The club should not attempt appraise non-cash donations of tangiblepersonal property and as party to the transaction, is automaticallydisqualified from doing so. We need to make sure we phrase any statement of value in such wayas to acknowledge that the club is qualified to neither offer appraisalsnor give tax advice. Unless the club is countersigning the donor's form 8383, and we won'tbe for donated items valued at less than $5k, the onus is on the donorto make a reasonable assumption of it's fair market value. The donor can put their own estimated value on the Release of Interest, rather than getting an appraisal. If you want to include a statement of value in the donor letter, itshould be phrased as a factual statements with a disclaimer that theclub is not qualified to offer an appraisal and that it's up to thedonor to assess the FMV and decide whether or not to rely on our assessment. In practice, I've only done that once.  I said that the laser donatedwas in brand new condition (foils still in the box, wrapped in factorypackaging) and that a new laser (at the time) retailed for $4500 (thiswas a few years ago.) If someone were to donate a boat/item worth over $5,000, the club should spend a few hundred on obtaining a qualifiedappraisal for the donor.  We're not required to do it, but it's a nicecourtesy to offer donors who choose us over a myriad of otherorganizations that would also pay for the appraisal. Before we could accept a vessel of this value(>$5000) we must have it valued by a certified surveyor. Approx$15/foot for survey ($510) We should offer to pay if he decided todonate. No good or services must be exchanges for the donation. So wecannot offer any special dispensations as far as the club isconcerned. Release of Interest Tohave proof that the Donor actually donated the boat, we need a releaseof interest from the owner. An example can be found below in "Attachments"--it is called SampleReleaseOfInterest.pdf PreMade ThankYou Donation Letter (courtesy of Goran) FEIN: 23-7087845 Box 352238 SAO 235 Seattle, WA 98195 Dear NAME HERE: On behalf of the Washington Yacht Club, I would like to thank you for your generous donation of Vessel Make Model Size here sailboat. We appreciate that your donation was provided to us with no goods or services in exchange. We intend to make significant intervening use of your donation in our sailing instruction program. Our sailing clubs mission it to help introduce the sport of sailing to the student, faculty and alumni of the University of Washington. We are deeply grateful for this donation because it will enhance our current fleet of small Sailboat Name sailboats and introduce sailors to faster sportier boat. With this donation we will be able to increase our class sizes and offer more advanced sailing techniques to our students. Currently we hold sailing and rigging lessons throughout the year and your donation will definitely become a favorite in our BoatFleet Name fleet. We plan on keeping and using the sailboat for as long as we are able to maintain and service the vessel which is usually 2-3 years of normal use. We do not plan on selling the vessel prior to that. Again, Thank you very much for your generous donation. Washington Yacht Club Program Director. Donor details: Mr. Name Address: Ph: Tax ID/SSN: Small Boat Donation Make: Model: Length: Year: HIN: Title: none. Bill of sale and release of interest. Attch: Donor supplied information (release of interest) |
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