Getting to know the nuances of non-cash giving.
The Benefits of Giving Non-Cash Items
You get to claim a tax deduction and the church gets the proceeds, while LifeWay handles all the logistics.
What Does Generosity by LifeWay Accept?
Vehicles, stock, gift cards (minimum balance of $15), diamond or precious metal jewelry, precious metal bullion, grain commodities, real estate, business inventory and boats. Vehicles includes cars, RVs, motorcycles, trucks, most heavy equipment, and even planes.
If you have something different in mind, please enter the information for us to consider or contact us at generosityonboarding@lifeway.com. Donations are screened to ensure that your church will benefit from the gift.
What is Not Accepted?
In general, Generosity by LifeWay does not accept gifts with a market value that is too low to generate significant proceeds for your organization.
Items that are not accepted include furniture, exercise equipment, home appliances, pianos, most musical instruments, outdated medical equipment, electronics and large electronics (including most printers, scanners, desktop computers, monitors, Windows XP laptops, VCRs and TVs), timeshares, cemetery plots, firearms, thrift store items and anything objectionable such as illegal or pornographic items.
Can I Donate an Item Located in Another State?
Absolutely! We have the resources and expertise to accept gifts in all of the contiguous 48 states.
Do I Need to Provide my SSN/TIN?
For most donations, no tax identification number is needed.
- Vehicles: No tax identification number is needed unless you plan to itemize their deductions and claim over $500 for your gift. Since January 1, 2005, the IRS requires that donors provide to the charity their tax identification number in order to claim a tax deduction greater than $500 for vehicle and boat donations. The church must include the tax identification number on the receipt and send a copy to you and to the IRS.
- Other donations: If you are planning to claim over $5,000 as a deduction for other types of donations, you must generally obtain an IRS-qualified appraisal and have LifeWay and the appraiser sign IRS Form 8283. LifeWay is required to report the sale to the IRS on Form 8282 along with nonprofit’s tax identification number.
How Much Can I Deduct?
These are the general guidelines for deductions:
- For vehicle and boat gifts: You can deduct the gross amount the asset sells for. If the sale is $500 or less, the deduction is the fair market value up to $500.
- For business inventory gifts: You can generally deduct the smaller of the fair market value on the date of contribution or the basis. For more information, see IRS Publication 526.
- For real estate and most other noncash gifts: you can usually deduct the fair market value of the gift at the time of transfer. The fair market value for deductions over $5,000 is determined by a qualified appraisal, which must be performed no earlier than 60 days before the gift. Appraisal guidelines can be found in IRS Publication 561.
(Generosity by LifeWay strongly recommends that a tax advisor be consulted for your specific situation as tax laws change frequently and LifeWay does not give tax or legal advice.)
Where Can I Find More Information About Deductions?
IRS Publication 4303 for vehicle and boat donations. Other publications that may be of interest are 526, 561, and 1771.
How Much of the Proceeds Go To My Church?
Your church generally receives 75% of the net proceeds after sales cost. We handle the work of liquidating noncash gifts so that the church you want to support can focus on its mission and still receive the benefit.
How Can I Know How Much My Gift is Worth?
For many types of gifts, you can get an idea of the current market value by searching for completed sales on eBay. Please keep in mind that heavy or bulky items will incur significant shipping costs and that no guarantees can be made.
The information presented on this website does not constitute legal, accounting, or other professional services or advice. We urge you to consult with your attorney, financial advisor, insurance agent, and/or tax advisor to review and approve this complimentary educational information. We gladly work with your independent advisors to assist in any way.