TAX CONSIDERATIONS FOR CORPORATIONS

Understanding Tax Considerations for

Gifts In Kind (GIK) Donations

This column will regularly feature a number of tax considerations, which Corporations may have in mind regarding any corporate inventory donation.  We are not qualified to offer tax advice, and request that any ideas or suggestions made here are referred to your CPA or tax attorney for their counsel to you.

Here is a list of IRS documents & instructions you can order for your Nonprofit Organization which define a wide range of tax issues related to Gifts In Kind donations and the considerations involved with any Corporate inventory donation.

Recommended IRS Publications

While we are not able to give tax treatment advice, we do encourage our clients and friends to order and study the following IRS publications to become acquainted with how Non-Cash Donations are treated for both Corporations and private individuals.  The most common questions of to treatment by the IRS of non-cash donations derive from the differences between regulations for the Corporation and for the private individual.

The publications can be ordered from the IRS at 1-800-829-3676.  The publication titles/numbers are:

8282 and 8283   Non-cash Charitable Donations and instructions

990-T               Exempt Organization Business Income Tax Return

535                   Business Expenses

526                   Charitable Contributions

557                   Tax-Exempt Status for Your Organization

598                   Tax on Unrelated Business Income of Exempt Organizations

561                   Determining the Value of Donated Property

551                   Basis of Assets

578                   Tax Information for Private Foundations and Managers

Web site: www.irs.gov