Writing for the The Jewish Federation of Greater Washington's website, Alan Breus has provided guidance for institutions that have received "non-cash assets" as part of a donation. Breus indicates that such gifts are a popular means by which doners secure income tax deductions and avoid capital gains taxes; he also mentions that these gifts are often used to establish "legacies in honor of" the doner or his family. Breus offers an insightful summary of non-cash asset donations in the U.S., saying:
The amounts at stake are often high. In 2006, U.S. individual taxpayers claimed itemized deductions for charitable contributions of 147,896 items of art and collectibles worth more than $1.22 billion, more than the value of donated mutual funds... The average value of an artwork contribution was $8,263.
The full article includes thorough instructions for those handling such transactions; it is available here.
Posted by Joshua Hock, Associate Editor, Wealth Strategies Journal
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