Gift Assets

Things I Can Give Other Than Cash
Your gift of securities, real estate, or other assets can make a meaningful difference in someone else's life and potentially bring you tax and other benefits.

Click on each option to learn more.
If you would like to donate one of these options, please contact Orrin Olsen.


Securities
Publicly traded securities are the most common form of noncash charitable gifts. You may find that securities are the most attractive assets to give, because they are often highly appreciated, easily transferred, and in most cases, easily valued for deduction purposes without the need for a formal appraisal. The most common forms of securities gifts are shares of stock, bonds, and shares of mutual funds.

The typical donor:
  • Holds securities that are highly appreciated in value.
  • Holds publicly traded securities.
  • Wants to transfer securities prior to sale.

Gifts features and benefits:
  • Immediate income tax deduction.
  • Deduction based on fair market value.
  • Avoidance of capital gains taxes.
  • Gift can be timed to match changes in the market.

How Do I Make a Gift of Securities?
How you proceed depends on how your individual securities are held. If you hold the securities in your possession, they may be sent directly to LDS Philanthropies. If the stock, bond, or mutual fund share is held in a brokerage account, you will need to work with your broker to complete the transaction. It is important that you send the certificate under separate cover from the stock power. The stock power must have a medallion signature guarantee, which you can obtain from your local bank. Gifts of securities held in a brokerage account can be made directly through the Church's Donations-in-Kind office. This office will work directly with your broker to correctly complete your gift.

How Do I Make a Gift of Securities Using Gift-Planning Tools?
Securities can also be used to fund life-income gifts such as a Charitable Remainder Unitrust, Charitable Remainder Annuity Trust, or Charitable Gift Annuity. In larger estates, securities are an ideal asset to fund a Charitable Lead Trust. A gift bequest made through a Revocable Trust or Will provides another alternative in making a gift of securities to the Church or one of its institutions.

Personal Residence
A personal residence may be an ideal gift under the right circumstances. A personal residence may take the form of a single-family house, a condominium, or a duplex. It may be owner-occupied or rented. If you give your residence outright to the Church or one of its affiliated charities, you receive a charitable deduction for the donation. You also avoid capital gains tax on the amount, if any, your residence has increased in value since you purchased it, and you are not subject to gift or estate taxes since the value of your residence is removed from your estate.

The typical donor:
  • Has paid off the mortgage.
  • Holds clear title to his or her personal residence.
  • Does not plan to pass the personal residence to heirs.
  • Desires to live someplace other than the personal residence.


Gifts features and benefits:
  • Immediate income tax deduction
  • Avoidance of capital gains taxese
  • Deduction based on fair market value; or present value of remainder interest if placed in a Charitable Remainder Unitrust
  • You may continue living in the residence if you use a Retained Life Estate Deed


How Do I Make a Gift of a Personal Residence?
A gift of a personal residence to the Church or one of its institutions must be reviewed and evaluated by the Church Real Estate Division. LDS Philanthropies can assist you with this process. A Real Estate Packet of specific information about the personal residence must be completed and sent to LDS Philanthropies. Once a Real Estate Packet is received by LDS Philanthropies, the evaluation process may take 60 to 90 days to complete. This process includes a physical inspection, environmental assessment, title report, appraisal, and so forth. When the evaluation is complete, you will receive notification of the results.

For tax purposes, you must obtain your own appraisal to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your professional appraiser.

How Do I Make a Gift of a Personal Residence Using Gift-Planning Tools?
A personal residence can also be given to the Church or one of its institutions with a Retained Life Estate Deed Using a Personal Residence or Farm. This planning tool allows you an immediate income tax deduction while you continue to live in and use your personal residence. If you do not plan to live in the residence, residence property can also make an ideal gift by funding a Charitable Remainder Unitrust, which provides you both income for life and numerous tax benefits. A personal residence can also be given through your Will or Revocable Trust.

Other Facts You Should Know about a Gift of a Personal Residence
A gift of your personal residence may have an emotional impact on family members and should be considered in relationship to other elements of your financial and estate plan. LDS Philanthropies professionals will be happy to discuss these issues with you.

Farm or Ranch
The family farm or ranch can make an ideal gift to the Church or one of its institutions. Family farms and ranches may create difficult estate management issues since children frequently do not wish to continue farming or ranching. Selling your farm or ranch in an estate sale often results in an undervalued sale price and the loss of what you and your ancestors have spent years building. A gift of your farm or ranch to the Church or one of its institutions in conjunction with other parts of your financial and estate plan can eliminate many of these challenges.

A typical ranch or farm consists of land, equipment, livestock, and crops. Each of these elements should be considered separately in the planning process to help you and your family achieve your charitable objectives.

The typical donor:
  • Has paid off the mortgage.
  • Holds title to the farm or ranch.
  • Does not have children who want to continue farming or ranching.
  • Desires to reduce management responsibilities.

Gift features and benefits:
  • Immediate income tax deduction
  • Avoidance of capital gain taxes
  • Deduction based on fair market value, or present value of remainder interest if placed in a Charitable Remainder Unitrust
  • You may continue living on the farm or ranch if you use a Retained Life Estate Deed

How Do I Make a Gift of a Farm or Ranch?
A gift of a farm or ranch to the Church or one of its institutions must be reviewed and evaluated by the Church Real Estate Division. LDS Philanthropies can assist you with this process. A Real Estate Packet of specific information about the farm or ranch must be completed and sent to LDS Philanthropies. Once a Real Estate Packet is received by LDS Philanthropies, the evaluation process may take 60 to 90 days to complete. This process includes a physical inspection, environmental assessment, title report, appraisal, and so forth. When the evaluation is complete, you will receive notification of the results.

For tax purposes, you must obtain your own appraisal to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your appraiser.

How Do I Make a Gift of a Farm or Ranch Using Gift Planning-Tools?
Farms and ranches can also be given to the Church or one of its institutions with a Retained Life Estate Deed Using a Personal Residence or Farm. This planning tool allows you an immediate income tax deduction while you continue to live on and use your farm or ranch. Farm or ranch property can also make an ideal gift by funding a Charitable Remainder Unitrust which provides you both income for life and numerous tax benefits. A farm or ranch can also be given through your Will or Revocable Trust.

Other Facts You Should Know about a Gift of a Farm or Ranch

The gift of your farm or ranch may have an emotional impact on family members and should be considered in relationship to other elements of your overall financial and estate plan. LDS Philanthropies professionals will be happy to discuss these issues with you.

Commercial Real Estate
Commercial Real Estate is a very common gift to the Church or one of its institutions. In your real estate portfolio, you may have commercial properties from which you have received significant rental income and depreciation benefits. These commercial properties may now present undesirable challenges, including the need for time-consuming management, an obligation to pay increased maintenance costs, and the prospect of substantial capital gains taxes if the property were sold. By giving your commercial real estate to the Church or one of its institutions, you are relieved of management responsibilities, avoid capital gains taxes, reduce your estate tax, and fulfill your charitable and family objectives.

The typical donor:
  • Holds title to the commercial real estate.
  • Owns commercial real estate that is without debt.
  • Desires to reduce management responsibilities.
  • Has taken advantage of available depreciation.

Gift features and benefits:
  • Immediate income tax deduction
  • Avoidance of capital gains taxes
  • Deduction based on fair market value, or present value of remainder interest if placed in a Charitable Remainder Unitrust
  • Gift can be timed to take advantage of market value

How Do I Make a Gift of Commercial Real Estate?
A gift of commercial property to the Church or one of its institutions must be reviewed and evaluated by the Church Real Estate Division. LDS Philanthropies can assist you with this process. A Real Estate Packet of specific information about the commercial property must be completed and sent to LDS Philanthropies. Once a Real Estate Packet is received by LDS Philanthropies, the evaluation process may take 60 to 90 days to complete. This process includes a physical inspection, environmental assessment, title report, appraisal, and so forth. When the evaluation is complete, you will receive notification of the results.

For tax purposes, you must obtain your own appraisal to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your appraiser.

How Do I Make a Gift of Commercial Property Using Gift-Planning Tools?
Commercial property can also be given by funding a Charitable Remainder Unitrust that provides you income for life and numerous tax benefits. In larger estates, commercial property can be used in conjunction with a Charitable Lead Trust to provide annual income to the Church or one of its institutions for a period of years, following which you transfer tax-free growth in the trust to your heirs. Commercial property can also be given through your Will or Revocable Trust.

Other Facts You Should Know about a Gift of Commercial Real Estate
Any tangible personal property associated with a commercial real estate gift may involve accelerated depreciation and the potential for unrelated business taxable income (UBTI). You should consult your professional advisors concerning this possibility. LDS Philanthropies professionals will be happy to discuss this and other issues related to your gift of commercial real estate with you and your team of professional advisors.

Unimproved Property
Real estate in the form of unimproved property is a common gift to the Church or one of its institutions. Your unimproved property may have increased substantially in value during the time you have owned it. By selling such property, you will face substantial capital gains taxes. If you gift the property to the Church or one of its institutions you avoid capital gains tax, may reduce your estate tax, and advance long-term charitable and family objectives.

Often, unimproved property is non-income producing and can be placed into a Charitable Remainder Unitrust and sold without capital gains taxes. The entire proceeds are then reinvested to provide you with income for retirement needs. A portion of the income may also be used to purchase life insurance in an irrevocable trust that will replace the value that the unimproved property represented in your original estate. This replacement value will generally not be subject to gift or estate taxes.

The typical donor:
  • Holds title to the unimproved property.
  • Owns the unimproved property without debt.
  • Wants to make a significant gift to charity.
  • Wants additional income (by placing the property in a charitable remainder unitrust).

Gift features and benefits:
  • Immediate income tax deduction
  • Avoidance of capital gains taxes
  • Deduction based on fair market value, or present value of remainder interest if placed in a charitable remainder unitrust
  • Gift can be timed to take advantage of changes in market value

How Do I Make a Gift of Unimproved Property?
A gift of unimproved property to the Church or one of its institutions must be reviewed and evaluated by the Church Real Estate Division. LDS Philanthropies can assist you with this process. A Real Estate Packet of specific information about the unimproved property must be completed and sent to LDS Philanthropies. Once a Real Estate Packet is received by LDS Philanthropies, the evaluation process may take 60 to 90 days to complete. This process includes a physical inspection, environmental assessment, title report, appraisal, and so forth. When the evaluation is complete, you will receive notification of the results.

For tax purposes, you must obtain your own appraisal to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your appraiser.

How Do I Make a Gift of Unimproved Property Using Gift-Planning Tools?
Unimproved property can also be given by funding a Charitable Remainder Unitrust that provides you income for life and numerous tax benefits. In larger estates, unimproved property can be used in conjunction with a Charitable Lead Trust to provide annual income to the Church or one of its institutions for a period of years, following which you transfer tax-free growth in the trust to your heirs. Unimproved property can also be given through your Will or Revocable Trust.

Other Facts You Should Know about a Gift of Unimproved Property
In many cases non-income-producing unimproved property can be converted to an income source for you and your family. Often, unimproved property is highly appreciated and is subject to increasing property taxes and potential for substantial capital gains taxes if sold outright. Giving unimproved property either outright or in trust provides an attractive alternative that benefits both you and the Church or one of its institutions. LDS Philanthropies professionals will be happy to discuss these gift options with you and your team of professional advisors.

Art
A painting, sculpture, or other piece of fine art can make an ideal gift. Whether purchased or inherited, selected works of art in your personal collection that you have enjoyed may now provide more enjoyment and fuller use if given to the Church or one of its institutions. Gifts of art can be widely used for educational and display purposes. Occasionally, pieces of art may be sold and the proceeds made available to meet high-priority needs.

The typical donor:
  • Has enjoyed using the art.
  • Does not desire to pass the art to heirs.
  • Wants others to enjoy the art.
  • Desires to make a meaningful gift.
  • Recognizes a "related use" by the recipient institution.

Gift features and benefits:
  • Immediate income tax deduction
  • Avoidance of capital gains taxes
  • Deduction based on fair market value
  • Gift can be timed to take advantage of changes in market value

How Do I Make a Gift of Art?
A gift of art to the Church or one of its institutions must be reviewed and accepted by LDS Philanthropies in behalf of the receiving entity. Acceptance of an art gift is based on a number of factors:
  • Condition of the art
  • Availability of appropriate display space
  • Harmony with existing art collections
  • Potential educational value
  • Confirmed "related use" of the art by the institution (or charitable income tax deduction may be limited
  • Approval by the institution's art acceptance councils

LDS Philanthropies will be pleased to assist you in reviewing your particular piece of art and determining if it is an appropriate gift to the Church or one of its institutions. If you do make a gift of art, details regarding delivery and insurance of your art gift can be discussed with an LDS Philanthropies professional.

For tax purposes, you must obtain your own appraisal to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your appraiser.

How Do I Make a Gift of Art Using Gift Planning Tools?
Art and art collections can make an ideal gift at death by Will or Revocable Trust. A gift of art made through your will or trust allows you and your family members to enjoy the art during your lifetime. Then, at your death, the art is transferred to the Church or one of its institutions. In isolated situations, art can also be used to fund a life-income gift such as a Charitable Remainder Unitrust.

Other Facts You Should Know about a Gift of Art
Art may pose special problems for the artist in his or her estate. Gifts of art by the artist to the Church or one of its institutions are deductible for income tax purposes only to the extent of the cost of materials used to produce the art. If art is gifted by the artist to heirs during life or from the artist's estate at death, it is valued for gift and estate tax purposes at fair market value. This can result in the art being sold to pay taxes, often at less than fair market value, leaving heirs with little or no proceeds. LDS Philanthropies professionals would be happy to discuss your particular circumstance with you and your professional advisors.

Retirement Plan Assets
IRA accounts, Keogh accounts, Section 401(k) and Section 403(b) plans, and other qualified pension and profit-sharing plans—otherwise known as "qualified retirement assets"—are often considered as gift candidates to the Church or one of its institutions. Retirement plan assets may be gifted during life or at death. The consequences of these choices are quite different.

A gift of these assets during life requires that they first be withdrawn from the retirement plan and transferred to LDS Philanthropies in the name of the recipient institution. Normally the amount withdrawn is fully taxable to the owner of the plan. The resulting gift is then deductible to the extent of 50 percent of adjusted gross income, limiting the extent of charitable tax benefits. Professional advice may be needed to properly consider the impact of any withdrawal, including the possibility of added tax penalties.

The Church or one of its institutions can be designated as the beneficiary of all or a portion of a retirement account at death. A gift of this type provides an estate tax charitable deduction for the value of the amount distributed to the Church or one of its institutions. It also provides important benefits by limiting the tax on income in respect of a decedent. Contact an LDS Philanthropies professional to learn more about this important benefit.

The typical donor:
  • Has substantial sources of retirement income.
  • Has other assets to pass to heirs.
  • Wants to make a substantial gift at death.

Gift features and benefits:
  • Estate tax deduction (gift at death)
  • Available if needed during life (gift at death)
  • Avoidance of taxable withdrawals (gift at death)
  • A significant gift to charity (gift during life or at death)

How Do I Make a Gift of Retirement Plan Assets? To complete a gift of retirement assets during life, counsel with your financial advisor to determine the tax consequences of withdrawing taxable funds (including any early withdrawal penalties). Compare this information with the income tax deduction you will receive from making a gift to the Church or one of its institutions.

To complete a gift of retirement assets at your death, contact your plan administrator and name the Church or one of its institutions as the "primary beneficiary" on the appropriate form provided by your plan administrator. Please provide a copy of the beneficiary designation form to LDS Philanthropies. LDS Philanthropies professionals can provide you with the correct legal name of the Church and its institutions.

How Do I Make a Gift of Retirement Plan Assets Using Gift Planning Tools?
Retirement plan assets can make an ideal gift at death by beneficiary designation. This allows you and your family the reassurance of knowing that if income from the assets is needed during your lifetime, it is available. At your death, the remaining funds in the retirement plan are transferred to the Church or one of its institutions. Retirement plan assets can also be used to fund a life-income gift at death such as a testamentary Charitable Remainder Unitrust. Transferring retirement plan assets to a charitable remainder trust at death can provide tax savings and other benefits to you and your family.

Other Facts You Should Know about Retirement Plan Assets
Retirement accounts are characterized as income in respect of a decedent (IRD). Generally, IRD items are treated as taxable income to the named beneficiary and also included in the estate of the decedent for purposes of determining federal estate tax. However, the IRD tax does not apply to charitable organizations. Therefore, retirement accounts gifted to the Church or one of its institutions at death by use of a "specific bequest" or "beneficiary designation" are fully available for use by the receiving institution.

Patents, Royalties, Copyrights
Patents, oil and gas royalties, music royalties, copyrights, and similar assets are termed "intangible personal property." Most of these assets, also known as "passive investments," require limited maintenance but can provide a substantial stream of income to the Church or one of its institutions to help build the kingdom. If there is a market for the underlying asset, it may be sold to provide immediate benefit to the receiving institution rather than relying on the income stream.

The typical donor:
  • Has owned the asset for at least one year.
  • Gives his or her entire interest in the asset.
  • Does not currently need the income stream.
  • Wants to make a significant gift to charity.

Gift features and benefits:
  • Immediate income tax deduction
  • Avoidance of capital gains taxes
  • Deduction based on fair market value, if the donor is not the creator
  • Gift can be timed to take advantage of changes in market value

How Do I Make a Gift of a Patent, Royalty, or Copyright?
Gifts of patents, copyrights, royalties, and other intangible personal property can be transferred to the Church or one of its institutions. For tax purposes, you must obtain your own appraisal from a qualified appraiser, based on the type of asset given, to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your appraiser. An appropriate deed of gift form to transfer ownership must be properly completed and delivered to LDS Philanthropies along with other pertinent documents.

Other Facts You Should Know about Patents, Royalties, and Copyrights
The transfer of patents, copyrights, royalties, and other intangible personal property can be complex. You should involve your financial or professional advisors in making a gift of this type of asset. LDS Philanthropies' professional staff will be happy to work with you and your advisors.

A patent is a document giving the right to produce, sell, or receive profit from a process or an invention. The term of the patent is effective for a number of years. A patent held by an inventor or a transferor is considered a capital asset. It is necessary to appraise a patent to determine its fair market value. As long as the full interest is transferred to the Church or one of its institutions, your income tax deduction is based on the full fair market value. Values are determined based on the anticipated income stream from the patent. It is important to complete the appropriate steps and documentation to complete a gift transfer.

A copyright is the exclusive ownership rights to a musical, dramatic, literary, or other artistic work. The copyright provides its owner with the right to receive, or to license to others, income from production, publication, or sale of the copyright for a period of years. Any work that is copyrighted consists of two elements: the copyright and the underlying work. Both need to be gifted to obtain a charitable income tax deduction. Separately, either element will result in a gift of a "partial interest," which will not qualify for a charitable income tax deduction. For purposes of estate tax deduction, the fair market value of either element can be used. Copyrights may be treated either as ordinary income or a capital asset. Consult with your professional advisors and LDS Philanthropies.

A royalty is the right to receive a portion of the income from or share in the profits generated by a copyright, patent, or other similar asset. When giving a royalty, it is important to transfer the underlying asset; otherwise "partial interest rules" (see "copyright" section above) will apply. If both the royalty interest and the underlying asset are transferred, you may deduct the fair market value as determined by a qualified appraiser. Royalties may be treated either as ordinary income or a capital asset. Consult with your professional advisors and LDS Philanthropies.

Oil and Gas Interests can have significant value. Giving these interests may be somewhat complicated, and you should involve your professional advisors. LDS Philanthropies professional staff members can work with your advisors and coordinate acceptance by the Church's oil and gas specialists.

Life Insurance Policy with Cash Value
Life insurance is a valuable gift option that is often overlooked. Life insurance is frequently purchased as part of an overall financial or estate plan. As circumstances in life change, the need for insurance may diminish. A gift of a paid-up policy can provide tremendous benefits to the Church or one of its institutions.

The typical donor:
  • Has outgrown the need for the insurance protection.
  • Has paid into the policy for several years.
  • Wants to ensure completion of a significant gift.
  • Uses the gift of insurance as part of an overall financial plan.

Gift features and benefits:
  • Immediate income tax deduction available to 50 percent of adjusted gross income
  • Flexibility in completing various giving plans

How Do I Make a Gift of a Life Insurance Policy with Cash Value?
To transfer ownership of an existing policy to the Church or one of its institutions, obtain a "change of ownership and beneficiary" form from your agent or insurance company. You should complete those portions of the form pertaining to "change of ownership" and "beneficiary designation." The correct name of the Church or one of its institutions must be used. The appropriate form and a copy of the policy should then be transferred to LDS Philanthropies in behalf of the Church or one of its institutions. The receiving institution must sign the "change of ownership" form as the new owner. If the policy is not "paid up," future premiums donated to the Church or one of its institutions are treated as cash gifts.

If you are considering a new policy as a gift to the Church or one of its institutions, contact an LDS Philanthropies professional. Each state has different requirements regarding "insurable interests" associated with the right of the charitable recipient to purchase a policy on your life. Some states require that you initiate the policy with a minimum premium payment before you can transfer the policy to the Church or one of its institutions.

How do I make a gift of Life Insurance with Cash Value using Gift Planning Tools?
A common use of life insurance is to create an “irrevocable life insurance trust” (ILIT) to use in conjunction with the creation of a Charitable Remainder Unitrust. Using this concept, an asset such as raw land is transferred to a charitable remainder trust, sold in the tax-free environment of the trust and reinvested. Income is paid to you, and you "gift" some portion of the income to an irrevocable insurance trust which is owned by your heirs. At your death, the unitrust corpus will go to the Church or one of its institutions and the life insurance in the insurance trust is available for your heirs free of estate and income tax. Charitable planning using these concepts should be undertaken only with the advice and counsel of your financial and legal professionals. LDS Philanthropies’ professional staff will be happy to work with your advisors to help you achieve your charitable goals.

Other Facts You Should Know about a Gift of Life Insurance with Cash Value
Two forms of life insurance are typically donated: paid-up "whole life" and "universal life." A whole life policy usually has cash value that may be used for the immediate needs of the Church or one of its institutions. Universal life policies can usually be structured so that it will not require future premiums after a period of years.
The charitable income tax deduction for a partially paid-up policy is based on the "interpolated terminal reserve" (ITR) and not the policy's cash value. Use of the ITR for gift valuation purposes is an Internal Revenue Service regulatory requirement. The ITR value is an amount which reflects the daily current value of the policy and is slightly more than the cash surrender value (the amount the insured would receive) if the policy were cashed-in to the insurance company.

Collectibles, and Other Tangible Personal Property
Collectibles such as coin and stamp collections, antiques, books, and jewelry—along with software, equipment, boats, yachts, automobiles, and aircraft—are referred to as tangible personal property. Whether purchased or inherited, collectibles that you have enjoyed may now provide more enjoyment and better use if given to the Church or one of its institutions. Gifted items may be used for display, assist in the classroom, or sold for charitable purposes.

The typical donor:
  • Has enjoyed using the tangible personal property.
  • Does not intend to pass the property to heirs.
  • Wants others to enjoy using the property.
  • Wants to make an important gift to charity.
  • Recognizes a "related use" by the recipient institution.

Gift features and benefits:
  • Immediate income tax deduction
  • Avoidance of capital gains taxes
  • Income tax deduction usually based on fair market value
  • Gift can be timed to take advantage of changes in market value

How Do I Make a Gift of a Collectible or Other Tangible Personal Property?
A gift of a collectible or other tangible personal property to the Church or one of its institutions must be reviewed and accepted by LDS Philanthropies in behalf of the receiving charity. Acceptance of these gifts is based on a number of factors:
  • Condition of the tangible personal property
  • Potential educational value
  • Confirmed "related use" of the tangible personal property by the charity
  • Approval by the charity's departmental acceptance committees

Details of delivery and insurance can be discussed with an LDS Philanthropies professional. For tax purposes, you must obtain your own appraisal to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your appraiser.

How Do I Make a Gift of a Collectible or Other Tangible Personal Property Using Gift Planning Tools?
Collectibles or other tangible personal property can make an ideal gift at death by Will or Revocable Trust. A gift of a collectible or other tangible personal property made through your will or trust allows you and your family members to enjoy the collectible or other tangible personal property during your lifetime. Then, at your death, the collectible or other tangible personal property is transferred to the Church or one of its institutions. In isolated situations, collectibles or other tangible personal property can also be used to fund a life-income gift such as a Charitable Remainder Unitrust.

Other Facts You Should Know about Collectibles and Other Tangible Personal Property
If tangible personal property gifts have been held by the donor for less than a year, they are considered short-term property and you can claim a charitable income tax deduction for the property's purchase price, or its cost basis. If the property has been held more than one year, or long term, you can claim a charitable deduction based on the fair market value. You may want to consider holding the property until a year passes to take advantage of long-term treatment. LDS Philanthropies professionals will be happy to discuss these options with you and your professional advisors.

Equipment or Inventory
Individuals and corporations can change and save lives by donating unused equipment or unsold inventory and supplies. Such gifts can be effectively used by the recipient for humanitarian, educational, or operational purposes.

Example 1:
An individual works for a corporation and notices unsold inventory or overstocked equipment that may be donated to the Church's humanitarian efforts. The donor contacts LDS Philanthropies, which determines that Church Humanitarian Service can direct the items to those in need. The items are immediately picked up and distributed to Third World countries, free of charge, where the donated items can literally save and change the lives of those in war-torn or disaster locations. Medical equipment, first-aid supplies, children's books, and computers are just a few examples of noncash items needed for humanitarian service around the world.

Example 2:
A corporation donates scientific or computer equipment to a Church-sponsored school, such as Brigham Young University, to provide students with access to the latest technology for research and higher learning.

The typical donor:
  • Has a desire to benefit a charitable cause.
  • Is sensitive to the needs or plight of others.
  • Has access to unused equipment or unsold inventory.
  • Sees an opportunity to distribute goods.
  • Wants to help a corporation make a tax-wise donation.

Gift features and benefits:
  • Demonstrates the corporation or individual is socially conscious
  • The donor may receive a charitable tax deduction for the noncash gift

How Do I Make a Gift of Equipment or Inventory? Gifts of equipment—such as medical devices, scientific instruments, computers, and machinery—can be transferred to the Church or one of its institutions either as an outright gift or a bargain sale. LDS Philanthropies will be pleased to assist you in reviewing the type of equipment or particular piece of equipment you wish to donate to determine if it is an appropriate gift to the Church or one of its institutions. If you wish to make a gift of equipment, discuss details regarding delivery with an LDS Philanthropies professional.

How Do I Make a Gift of Equipment or Inventory Using Gift-Planning Tools? Equipment can make an ideal gift at death by Will or Revocable Trust. A gift of equipment made through your will or trust allows you to use and benefit from the equipment during your lifetime. Then, at your death, the equipment is transferred to the Church or one of its institutions. In some situations, equipment can also be used to fund a life-income gift such as a Charitable Remainder Unitrust.

Other Facts You Should Know about a Gift of Equipment or Inventory
For tax purposes, you must obtain your own appraisal from a qualified appraiser, based on the type of equipment or inventory given, to determine the fair market value you claim on your income tax return. Your tax return must include IRS form 8283 signed by your appraiser. Determining the value of a charitable donation for tax deduction purposes should be done in consultation with an accountant or legal advisor. It is also essential that your professionals determine if your gift will make you liable for any state or federal taxes. An appropriate form of ownership-transfer document should be properly completed and delivered to LDS Philanthropies along with other pertinent documents.