Noncash Gifts: Evaluation, Management and Sales Services
For institutions, as well as for individuals and their families, Delphi Partners evaluates, manages and sells noncash assets for philanthropic purposes. Examples of such noncash assets include art, jewelry, antiques, aircraft, watercraft, classic cars, patents, copyrights and intellectual property.
Donating noncash assets is a complex undertaking that requires an experienced appraiser, an appropriate beneficiary, and skilled oversight of the process to manage risk.
In identifying an appropriate beneficiary, it is important to keep in mind that the IRS differentiates assets that are ‘for the benefit of’ a charitable organization from assets that are ‘for the use of’ a charitable organization.
- A donation that is ‘for the use of’ an organization has to be relevant to its purpose (e.g. a painting given to a museum). For these gifts, the donor can deduct the fair market value.
- A donation that is ‘for the benefit of’ an organization is not relevant to its purpose (e.g. a painting given to a cancer research organization that would sell the painting). For these gifts, the donor can deduct only the original cost basis.
Delphi Partners’ network of appraisal experts and financial consultants helps clients structure the donation to maximize the impact and benefits of their gift. Delphi Partners oversees the appraisal, management and disposition of property, reconciling the charitable intent of the donor with the financial needs of the nonprofit organization or educational institution.
