Making a donation of tangible personal property can be an excellent way to save on taxes, dispose of property that is expensive to insure or maintain, and support The Nature Conservancy.
How It Works
Your personal property can be used to help protect our most important lands and waters for nature and people.
Here's the process:
- You transfer a painting, antiques, collectibles or other personal property to TNC. (Note: Most gifts of personal property are made outright.)
- The Conservancy may hold the property and display or use it, or may sell the property and use the proceeds to advance critical conservation work.
- Receive gift credit and an immediate income tax deduction for the appraised value of your gift, provided your gift satisfies the "related use" requirements of the IRS.
- Pay no capital gains tax, provided your gift satisfies the "related use" requirements of the IRS.
- In some instances, fund a gift that pays you income, such as a unitrust.
- Have the satisfaction of making a significant gift to TNC without adversely affecting your cash flow.
Can It Work for You?
A gift of personal property may be for you if:
- You hold artwork, books or collectibles that you no longer wish to maintain.
- You hold equipment, supplies or other items that would be useful to TNC.
- You want to avoid capital gains tax on the transfer of these assets.
- Donors who contribute appreciated property, like securities and real estate, receive two tax breaks: a charitable deduction for the full fair market value of the asset and no capital gains tax on the transfer. The same benefits apply to gifts of personal property. You will need to secure an independent appraisal of the property to establish the amount of your deduction.
- To obtain a full, fair-market-value deduction for a gift of personal property, the items must relate to TNC’s overall charitable purpose and functions. Do not donate personal property with instruction that the items be liquidated for cash, because the IRS will then limit your charitable deduction to your cost basis in the property. We will work with you and your advisors on this point as you consider a personal property gift.
Note: Contact your local Conservancy chapter to inquire about donating a vehicle.
Meet Suzanne and Garland Marshall
The Marshalls donated their South Carolina vacation home to help protect the lands and waters they love.