Questions and Answers
What are the tax benefits of donating personal property?
The key question for ADLF to determine is whether or not your donation has a legitimate use related to the charitable mission of our organization. For example a gift of art work or a stamp collection can enhance an educational purpose; a gift of a piano or other musical instrument can enhance a musical program; a gift of kitchen equipment can enhance a feeding program, etc. If your gift is related to our charitable work then your income tax deduction is based on the fair market value of the property. For gifts of property with a value of $5,000 or more, an independent qualified appraisal of the property is required by the IRS.
If your gift of personal property has no relation to our charitable work, then your tax deduction is limited to your cost basis in the property. We suggest that you acquire IRS publications 526 and 561 to review all the comprehensive information available for gifts of personal property and discuss this with your advisor.
Can I arrange for a life income stream for my gift of personal property?
In some cases the answer is yes. Personal property can be transferred to a charitable remainder unitrust which will provide the donor with tax deduction benefits as well as setting up an income stream for beneficiaries such as a spouse, children and/or other loved ones. Only personal property with a value of $100,000 or greater should be considered for this purpose.
The professionals at our Department of National Planned Giving, Legacy and Endowments will be happy to discuss your interests, concerns and financial options, and work personally with you and/or your legal and financial advisors to create a plan that meets your needs and supports the Anti-Defamation League Foundation.
For more information, please contact:
Director of National Planned Giving, Legacy and Endowments
Anti-Defamation League Foundation (ADLF)
605 Third Avenue
New York, NY 10158
plannedgiving@adl.org
1-888-235-9710
This information is provided for educational purposes. The Anti-Defamation League Foundation and ADL are not financial, legal or tax advisors. Please contact your advisors regarding your financial, legal or tax needs.
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