Fine art can be a valuable donation for a nonprofit. Whether it is used as part of a gala auction or will be sold for cash to benefit the organization’s mission, it is important to understand the rules surrounding tax deductions and appraisals. Which responsibilities fall on the exempt organization and which are solely the concern of the donor?
In order to claim a tax deduction for a non-cash donation like art, donors must come up with a value for that deduction. If the value of the deduction exceeds $5,000, the IRS requires a qualified appraisal of the donated item, which …read more
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