Non-cash Gifts

Many of the largest gifts received by WorldVenture are in the category of non-cash gifts. These gifts include real estate, stocks and bonds, mutual funds, automobiles and RVs, jewelry, art, life insurance policies and so forth.

In the case of publicly traded securities (stocks, bonds, mutual funds), the donor may claim a charitable income tax deduction equal to the average of the high and low quoted selling price on the date of the gift to charity. Since there is an established market for publicly traded securities, no appraisal is required.

For non-cash gifts valued at $500 or more, the donor is required to complete Internal Revenue Service Form 8283 Non-cash Charitable Contributions, which provides information to the IRS about the gift property. In some cases, an appraisal is also required. A companion form, IRS Form 8282 Donee Information Return, must be filed with the IRS by the charity if such property is sold within two years. You can download these forms and others from the irs.gov website.

Under IRS regulations, donors are required to substantiate the fair market value of non-cash gifts. Depending on the value and nature of the gift, the donor may use self-valuation, established market or professional appraisal. Therefore, non-cash gifts are receipted by description and not by dollar value. For example, a receipt for a gift by check of $100 would indicate a $100 gift on the receipt. On the other hand, a receipt for 1,000 shares of stock would indicate "1,000 shares of [name of stock]" without a stated value. The same is true of a gift of real estate, automobile, etc.: the receipt would show the legal description of the property but not a value.