In-Kind Gifts

If you would like to donate a gift-in-kind, please contact Hugh Montgomery at 802-387-6272 or hmontgomery@putneyschool.org for more information.

Guidelines for Acceptance of a Gift-in-Kind

Definition

Gifts-in-kind are generally defined as non-cash donations and should be reported at the face (fair market) value. Fair market value is the price a willing, knowledgeable buyer would pay a willing knowledgeable seller when neither has to buy or sell. Gifts-in-kind may include such items as computers, books, paintings, equipment, magazine subscriptions, food or other items used for hosting dinners. The value of a person's or organization's time or service is not considered a charitable contribution and will not be recorded as a gift. It is acceptable to those providing professional services to bill the institution for the service, accept the payment and then make a cash gift back to the institution.

Acceptance

To assure compliance with regulation, all in kind gifts must be proposed in advance to the Director of Development or a designated member of the development office. The Director of Development is the only person authorized to accept gifts and execute the appropriate documents at his/her own discretion, however any gift may be referred to the ad hoc Gift Acceptance Committee for a decision.

Substantiation > $5,000

Tax law requires that a donor making a contribution of property that has a claimed value in excess of $5,000 must obtain, at the donor's expense, a qualified appraisal of the property within 60 days. The donor must fill out IRS form 8283 and send it to the donee (Putney School). Section B of form 8283 requires the donee to sign the form acknowledging receipt of the property, a Putney official, normally the Director of Development, and must complete and sign Part IV then return it to the donor. When the donor has completed this form a copy must be sent to the donee. The donor must complete and attach an appraisal summary form and IRS form 8283 to his/her tax return in which the charitable deduction is claimed. Unless these requirements are met, no federal charitable tax deduction is allowed.

Substantiation $501 - $5,000

For contributions valued at $501 to $5,000 the donor must complete only Section A of form 8283 and attach it to his/her federal tax return. Section A requires the donor to provide various details about the gifted property including any restrictions attached to it. Appraisal of the property or signature of the donee acknowledging receipt of the gift is not required, and the form need not be signed by the school.

Substantiation <= $500

For contributions valued at less than or equal to $500 there are no requirements to complete form 8283. However, the donor must maintain reliable written records with respect to each item of donated property and must obtain a receipt from the donee.

Substantiation Art Work >= $20,000

If the total deduction claimed for art is greater than or equal to $20,000 the donor must attach a complete copy of the signed appraisal. For individual objects valued at $20,000 or more, a photograph must be provided upon request. An appraisal (by the donor) must be made not earlier than 60 days before the date the property is contributed.

If the donor is the creator of a piece of donated artwork, the donor's deduction is limited to the cost of the materials only. In this case our own appraisal obtained for insurance purposes is sufficient.

For further information on these and other opportunities for giving, please contact:

Hugh Montgomery
Director of DevelopmentĀ 
The Putney School
Elm Lea Farm
418 Houghton Brook Road
Putney, VT 05346-8675

802-387-6272
802-387-6277 (fax)
hmontgomery@putneyschool.org

The Putney School | Elm Lea Farm, 418 Houghton Brook Road, Putney, Vermont 05346-8675
802-387-5566 (main) | 802-387-6278 (fax) | admission@putneyschool.org | info@putneyschool.org
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