Gifts in kind are an important way to help Samaritans Offering Support through a charitable gift to SOS and/or the Share Hope Now Program. 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 SOS. The IRS requires the donor to determine the fair market value of the gift for individual, foundation, or corporate tax reporting purposes. SOS will issue a gift in kind receipt consisting of a simple description of the donated property. SOS 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 $500 require the completion of IRS Form 8283. Acceptance of a gift in kind is made by officials at SOS. Further, gifts in kind that involve unique handling provisions or require a consequent use of SOS resources such as personnel costs, storage facilities, set-up costs or license fees may require a written agreement between the donor and SOS.
Corporate gifts in kind of $10,000 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 Share Hope Now Program to transfer ownership of any remaining gift in kind assets to SOS unless directed otherwise by the donor and SOS.
How to give a gift in kind
- The asset must be placed in the physical possession of SOS or the Share Hope Now Program.
- The Gift In Kind form should be completed. The development officer 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 $10,000 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 $500, 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 sub-chapter C Corporations. The completed paperwork can be given to your contact who will then forward it to the SOS where the transaction will be acknowledged and receipted. The IRS Form 8283, which is acknowledged by SOS, will be returned to you with the gift receipt. SOS recommends that the donor consult with his/her tax advisor to determine the appropriate tax consequences of any charitable contribution.
- The SOS-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 SOS officials to be inappropriate for permanent preservation may be disposed of by SOS.
- Donors are asked to complete and sign an authorization form providing SOS instructions for publicizing the gift in kind.
We are developing partnerships with companies to provide long-term support through in-kind contributions and are reminding everyone that they are more than just a resource; they are an integral part of the SOS family.
Our growing list of gift-in-kind donors includes:
Benefits of donating services
There are a number of benefits to a consultant or business to take on pro bono work:
- it can offer opportunities to apply skills that paid jobs don’t currently provide
- it can offer greater exposure for a consultant or business
- it can increase the amount and quality of portfolio material to show off to potential paying clients
- it can lead to paid work
- it can be a refreshing, fun, enlightening change for employees from their usual focus. For instance, a software training company hosting a training workshop for teen agers.
- it can offer experience in and exposure to a whole new sector — the mission-based or nonprofit sector — which has knowledge, skills, work/management styles and resources that can be applied to the for-profit sector (some businesses use employee volunteering as a way to allow employees to develop certain skills relating to professional development)
- it can demonstrate a consultant’s commitment to the community, which many people take into consideration when choosing with whom they are going to do business.
How much of donated work can a consultant or business deduct from taxes? None. There is some tax credits volunteers can take relating to expenses incurred during pro bono work, however.
Become one of next Gift-In-Kind Donors, download the form to begin»