noncash 101 · how the general noncash donation process works once a donor enters a donation on...

Noncash 101A GUIDE TO MANAGING N O NCASH DONATIONS

Questions?P l e a s e c o n t a c t i D o n a t e a t 8 7 7. 8 9 7. 4 2 7 3 o r d o n a t i o n @i d o n a t e . c o m w i t h q u e s t i o n s a b o u t w h e t h e r s p e c i f i c d o n a t i o n s c a n b e a c c e p t e d .

TA B L E O F CO N T E N TS

General Guidelines

Donation Process & Receipting by Type

Canceled Donations

Best Practices

FAQs

G E N E R A L G U I D E L I N E SIn order to maximize the final value of items donated, we limit donations to the types of items that sell well and have the highest donation value:

Always Accepted

• Passenger vehicles

• Precious metal bullion

• Commodities

• 14K gold jewelry and precious stones

• Gift cards (minimum balance of $25; must be an accepted company)

• Publicly traded stock and mutual funds

• Designer Purses

Typically accepted

• Large quantities of business inventory overstock

• Motorcycles

• Collectibles

• Musical Instruments

Accepted on Case-by-Case Basis

• Boats, RVs, ATVs, and other recreational vehicles

• Real estate (minimum value of $50,000)

• Medical equipment and electric wheelchairs

• Business interest

• Other donations (must have approximate resale values of $2 5 0 + )

Not Accepted

• Pianos and organs

• Furniture, exercise equipment, and home appliances

• Timeshares

• Firearms (iDonate Charitable Foundation cannot take ownership for legal reasons; however, we are happy to provide referrals to sellers)

• Anything you would see in a thrift store (i.e. books, apparel, household appliances)

• Anything that may be considered objectionable in the discretion of iDonate Charitable Foundation (including pornographic or illegal items)

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Noncash 101A GUIDE TO MANAGING NONCASH DONATIONS

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DONATION PROCESS & RECEIPTING

How the General Noncash Donation Process Works

Once a donor enters a donation on your website, iDonate will contact the

donor by an email or phone call, depending on the donation. Although

every donation scenario is unique, our goal is to deliver a quality donation

experience that is simple for the donor and cost-effective for the charity—from

the transfer to the sale. We are serving your donors and recognize your trust in

us to contact your donors, and we don’t take that lightly.

iDonate Charitable Foundation provides the appropriate donation receipts.

Once the donation is sold, the proceeds are processed, and a check is sent to

you as a contribution from the Foundation. No receipt is needed from you to

the donor or to iDonate Charitable Foundation.

The check from iDonate Charitable Foundation will have a transaction number

in the memo section. You can search for this number in your iDonate account

to see the payout details. If you prefer to receive payout for noncash donations

via ACH, please email [email protected] to request it.

Status Types

Noncash donations are managed with six status types:

• Pending Approval: The donation has been offered by the donor.

• Approved Pending Donor Action: The donation has been accepted by iDonate and is waiting for the donor to relinquish ownership by scheduling towing, shipping the item to iDonate or other means of transfer.

• Received – Pending Title / Deed Transfer: The donation has been relinquished by the donor but the title transfer has not been completed.

• Sale in Process: The item is in the process of being sold and donor has received a gift-in-kind receipt.

• Sold Pending Receipt of Proceeds: The item has been sold and iDonate is awaiting funds.

• Sold Finalizing Proceeds: Proceeds have been received and iDonate is finalizing the accounting and preparing distributions.

• Complete: The grant check has been sent to your organization or the ACH has been processed.

• Canceled: Donation record has been canceled for reason indicated.


General Guidelines

Donation Process & Receipting

by Type

Canceled Donations

Best Practices

FAQs

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General Guidelines


by Type

VEHICLES

STOCK

OTHER

Canceled Donations

Best Practices

FAQs

VEHICLE DONATION PROCESS

Donation WebsiteThe donor enters their vehicle donation on your website.

Donation Confirmation

The donor sees a thank you screen that informs them that they will receive an email containing next steps to transfer the donation.

Thank You & Next Steps Email

The email contains detailed information on scheduling pickup, title transfer and receipting documents.

Title & Physical Transfer

The title is received during physical pickup.

Gift-In-Kind Receipt

The donor is emailed a gift-in-kind receipt after the title is verified to be transferrable.

IRS Notification & Tax Receipt

After the donation is liquidated, the IRS and donor are sent appropriate tax receipts:

1098-C: • $500 or below, no value listed• Over $500, sale price listed if SSN provided

Form 8282:

Over $5,000

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General Guidelines


by Type

VEHICLES

STOCK

OTHER

Canceled Donations

Best Practices

FAQs

STOCK DONATION PROCESS

Donation Website

The donor enters the stock donation on your website.


The donor is thanked and informed via email of next steps instructions.

Letter of Authorization

A link to the letter of authorization will be emailed to the donor. The donor will sign and send to his stock broker to transfer the donation.


After the donation is received, a gift-in-kind receipt is emailed.

Communication & Market Assessment

iDonate contacts the donor and assesses the marketability of the donated items.


After the transaction is complete, the donor is emailed a gift-in-kind receipt.

*Please note that items collected from multiple individuals cannot be receipted.

Shipping Arrangements

Once vetted and approved, arrangements are made for the donation’s transfer.


General Guidelines


by Type

VEHICLES

STOCK

OTHER

Canceled Donations

Best Practices

FAQs

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Donation Website

The donor enters their donation on your website.


The donor is thanked and informed via email of next steps instructions to transfer the donation.

Thank You & Next Steps Email

The email states that iDonate will reach out to the donor with next steps.

“OTHER” DONATION PROCESS

“Other” donations can include jewelry, business inventory, precious metals, collectibles and commodities.

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General Guidelines


Canceled Donations

Best Practices

FAQs

CANCELED DONATION PROCESS

Although we specialize in noncash donations, we are not able to process every item that is donated.

With our goal to bring in more dollars than we spend to get proceeds for your organization, unfortunately some donations don’t qualify for a variety of reasons:

• The item could not be moved and sold cost-effectively. Some-times the cost of processing an item is too high in relation to its value on the current market. Since we strive to deliver donation processing services that are cost-effective for organizations, we do not accept these items.

• The item was intended for use and not liquidation. Donors sometimes give an item that they think the charity might be able to use. When this happens, you will receive an email alerting you that the donation was intended for your organization’s use.

• We couldn’t reach the donor. Occasionally a donation is initiated but our team is subsequently unable to reach the donor. After reaching out multiple times without a response, the donation is canceled until further notice.

• The donor decided not to proceed with the donation. Occasionally, donors find alternate uses for their donations, such as a relative or friend in need of a vehicle.

• The donation was not received. Sometimes donors offer items but then cannot find the items or don’t follow through with sending them. We can reactivate these donations if the items are received.

• There are title issues. Any titles required by the donation’s jurisdiction must be obtained in order for us to accept an asset. If the donor does not have the necessary titles, we can often provide assistance; but we must confirm that we can obtain the appropriate lien-free titles to donated assets before they are accepted for donation.

When we are unable to process a donation cost-effectively, we contact the donor by email to:

• Explain why. We don’t want donors to be confused or discouraged from giving, so we make sure to explain why each can-celed donation could not be processed.

• Give donors our contact information so they can reach us with any and all questions. They can call us at 877.897.4273 or email at [email protected].

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General Guidelines


Canceled Donations

Best Practices

FAQs

BEST PRACTICES

We’ve learned a thing or two about successful noncash fundraising, including what donations and which campaigns are more successful than others.

Tips & Tricks for Navigating the Vast Noncash Opportunity

Vehicle donations can bring in larger dollar amounts, but occur less often. Just one vehicle donation can significantly impact your organi-zation.

Some vehicles may be nice and new enough to sell through a dealership rather than at auction. Selling through a dealership helps maximize the donor’s tax deduction, and helps your organization receive more proceeds. There are additional costs involved with dealerships, such as transport, repairs and additional commission, so dealership costs are compared to auction costs before vehicles are placed with dealers.

In order for us to be able to consider accepting other vehicle donations, such as boats and RVs, they must be no more than 10-year old models in good condition. Boats and RVs are made out of different materials than passenger vehicles, so they do not have intrinsic scrap value.

Gift cards are actually resold on a market similar to the stock market, so their resale values change per day and per brand name. Although you can see the intended gift in your tracking system immediately, we have to wait at least 30 days to provide proceeds so we can receive the mailed card and ensure that the balance was not spent after being donated.

Business inventory donations provide a win-win combination for you and businesses that cannot store excess inventory. Liquidation pricing applies, so this option is typically most appropriate for over-stocks.

Gifts of fine jewelry and artwork are great, but remember that the insurance appraisal of the item is typically about 10 times the actual resale price.

Commodity donations, such as grains, stocks and bullion, are some of the best ways to raise funds for your organization. In addi-tion to potential tax advantages for the donor, the processing fees are very low, so your organization receives an optimal benefit.

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General Guidelines


Canceled Donations

Best Practices

FAQs

GENERAL

VEHICLES

BUSINESS

INVENTORY

REAL ESTATE

OTHER

CHARITY-

FACING

Noncash 101

GENERAL NONCASH DONOR FAQs

What does iDonate accept?See General Guidelines for Noncash Giving on page 2.

What does iDonate not accept? In general, iDonate does not accept donations with a market value that is too low to generate significant proceeds for your cause, such as furniture, electronics, appliances, timeshare properties, and most types of artwork.

Can iDonate accept an item that is located in another state?Absolutely! iDonate has the resources and expertise to accept donations in all states.

How much can I deduct?These are the general guidelines for deductions.

1. For vehicle and boat donations, 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.

2. For business inventory donations, 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.

3. For real estate and most other noncash donations, 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.

(iDonate strongly recommends that a tax advisor be consulted for your specific situation as tax laws change frequently and iDonate does not give tax or legal advice.)

Where can I find more IRS information about deductions?iDonate recommends IRS Publication 4303 for vehicle and boat donations. Other publications that may be of interest are 526, 561, and 1771.

Who will provide my donation receipt? iDonate Charitable Foundation, Inc., a 501(c)3 tax-exempt public charity, will provide applicable donation receipts. iDonate assumes the liability for noncash donations so your cause can focus on its mission.

Will I have to pay to make a noncash donation?There is no cost to donate most items, such as vehicles, boats, and electronics. We generally provide shipping; however, we will request that you ship certain other types of donations. You are responsible to obtain any necessary appraisals for real estate and high-value items. For real estate donations, we request that you consider making a cash donation to help with the carrying costs.

How much money from the sale of my donation goes to my cause?Your cause generally receives 75% of the net proceeds after sale costs. iDonate handles the work of noncash donations so that the organization you want to support can focus on its mission and still receive the benefit.

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General Guidelines


Canceled Donations

Best Practices

FAQs

GENERAL

VEHICLES

BUSINESS

INVENTORY

REAL ESTATE

OTHER

CHARITY-

FACING

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Will 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 your deductions and claim over $500 for your donation. 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 charity must include the tax identification number on the receipt and send a copy to the donor 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 iDonate and the appraiser sign IRS Form 8283. iDonate is required to report the sale to the IRS on Form 8282 along with your tax identification number.

This information is held in a secure location.

VEHICLE FAQs (including motorcycles and ATVs)

How can I donate my vehicle? What should I expect?The first step is to fill in the donation information. You will receive a call or email shortly to arrange for the pickup of your vehicle and to discuss the title transfer. After the donation has been picked up, you will receive a gift-in-kind receipt by email. After the donation has been sold, iDonate will give proceeds to your cause and send your final tax receipt.

iDonate can accept almost every vehicle that is offered, regardless of the condition, and many RVs and boats that are 10 years old and newer. In the event we are unable to accept the donation, we will inform you via email.

Do I need to have the title in order to donate my vehicle or boat?Yes. You need to have the title with no outstanding liens. Depending on the state, a boat may require three titles: one for the boat, one for the motor, and one for the trailer. Tax receipts go to the owner listed on the title.

I’m not sure about signing over the title.In order for us to receipt you for the car, you have to transfer ownership. Explain that the title is transferred on dealer license via the title depart-ment, so the seller signature is all that is needed.

How should I sign the title for my vehicle or boat?You should sign your title exactly as your name appears on the title. If there are two names joined by “AND,” both of the individuals generally need to sign. If there are two names joined by “OR,” only one of the individuals generally needs to sign. Be careful: titles with white-out or cross-outs cannot be accepted. You may also want to check with your state’s motor vehicle department to see if your state has other require-ments to complete the transfer.



General Guidelines


Canceled Donations

Best Practices

FAQs

GENERAL

VEHICLES

BUSINESS

INVENTORY

OTHER

REAL ESTATE

CHARITY-FACING

How quickly can my vehicle or boat be picked up?Usually, your vehicle or boat can be picked up within three business days. We are often able to accommodate faster pickup times.

Do I need to be with my vehicle or boat when it is picked up?No. In most cases you will not need to be present when your vehicle or boat is picked up.

How do I get a receipt from the tow truck driver?The donor can use this wording: YEAR MAKE MODEL (VIN#) was received from DONOR NAME at DONOR ADDRESS by DRIVER’S NAME of COMPANY on DATE. [Then both would sign.]

When can I discontinue my insurance?You can discontinue your insurance after your vehicle or boat has been picked up.

How do I let my state know I have transferred ownership of my vehicle?They can check with their DMV or look it up on the DMV website for them.

How much is my vehicle or boat worth?If they want to know how much the vehicle will sell for, reference the Pro-Quote and just let them know that this is what that year/make/models are going for at auction on and we can’t guarantee a sale price.

When they ask for the buyer informationThe buyer information that is written on titles can vary from state to state. The buyer information can correspond to iDonate.com or our dealer. For this reason, we ask the donor leave the buyer information blank and let our title department complete that portion of the title.

BUSINESS INVENTORY FAQS

How can I donate my business inventory? What should I expect?

The first step is to fill in the donation information. We will contact you shortly to ask for an inventory list and arrange for shipping.

Once the inventory is picked up, we handle all the sale costs; however, iDonate will probably ask you to cover the shipping so that it does not de-crease the amount to your cause.

After the donation has been picked up, you will receive a gift-in-kind receipt by email. After the donation has been liquidated, iDonate will give proceeds to your cause. iDonate accepts inventory

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General Guidelines


Canceled Donations

Best Practices

FAQs

GENERAL

VEHICLES

BUSINESS

INVENTORY

REAL ESTATE

OTHER

CHARITY-FACING

REAL ESTATE FAQS

Why should I consider a gift of real estate? iDonate provides a turn-key solution to turn your property into financial support for your cause. iDonate assists with all the transfer paperwork and coordinates the sale of the property, forwarding proceeds to your cause.

Appreciated real estate makes a great tax-advantaged gift because you generally receive two key benefits:

1. A current-year tax deduction for the full fair market value of the property 2. No capital gains taxes paid on the sale of the property. Please consult

with your tax advisor for information on how these benefits apply to your situation.

Can my real estate benefit the cause?By giving a home, farm land, undeveloped ground, or commercial property, you can support your favorite charity. iDonate works with Helping Hands Support, Inc., a 501(c)3 public charity, to accept gifts of real estate, liquidate them, and give proceeds to the cause you designate.

If you decide to offer a gift of real estate, iDonate will research the property to make sure the gift is in the best interests of the giver and the charity. This means iDonate will look at the marketability, title history, and unique characteristics of the property. Once the gift is accepted, iDonate assists with all transfer paper-work, then works to sell the property and maximize the dollars going to the designated cause.

What types of real estate will iDonate accept?iDonate will generally accept a real estate gift if all of the following conditions are met:

1. Fair market value is more than $50,000.

2. If the property is zoned commercial or is farmland, the Phase 1 environ-mental report comes out clean.

3. There is no debt on the property.

4. After the donation, Helping Hands Support, Inc. will be the sole owner of an undivided interest in the property. In other words, the donor can sub-divide the property and give a complete interest in one of the parcels, but we prefer not to accept property where we will be co-tenants with others.

iDonate prefers not to accept property that is subject to a rental agreement unless there is reasonable certainty that the property will sell within one month. We will consider deviating from these qualifications on a case-by-case basis.

What other preconditions must be satisfied before iDonate accepts a gift of real estate?iDonate must obtain an ownership and encumbrance report (O&E) and/or title insurance at the donor’s expense. You will also generally need to obtain an appraisal and have the appraiser sign IRS Form 8283. iDonate will consult with a real estate agent in the area to determine the marketability of the property.


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General Guidelines


Canceled Donations

Best Practices

FAQs

GENERAL

VEHICLES

BUSINESS

INVENTORY

REAL ESTATE

OTHER

CHARITY-FACING

What costs am I responsible for when I donate real estate?iDonate requests that the donor cover all transaction fees, closing costs, recording fees, listing agent’s fee, and buyer’s agent fee, if applicable. The donor may cover these costs by donating cash to Helping Hands Support, Inc., a 501(c)3 public charity, or by allowing these costs to be taken out of the proceeds, reducing the cash going to charity.

In addition, iDonate asks the donor to cover insurance and property taxes during the period of ownership by Helping Hands Support, Inc. If there is not a potential buyer, iDonate requests that the donor make an additional tax-de-ductible cash contribution at the time of the gift to cover one year’s worth of these costs.

How can I donate real estate? What should I expect?The first step is to fill in the basic donation information. You will receive an email requesting further information. When we receive the information, we will contact you to discuss your offer as well as any documentation needed to accept your donation.

iDonate will prepare a deed to be signed and notarized; then the deed will be filed with the appropriate county. When the property has been transferred, you will receive a gift-in-kind receipt. After the property is sold, iDonate will give proceeds to your cause.

OTHER FAQS

What are the benefits of donating?iDonate makes it easy to help your cause with items of value that you no lon-ger need. iDonate works out the logistics. You get to claim a tax deduction, and your donation benefits your cause.

What should I expect when I offer my donation?We will be in touch soon to gather additional information and arrange to transfer your donation. You will then receive a gift-in-kind receipt by email. After the donation has been sold, iDonate will give proceeds to your cause. In the event we are unable to accept the donation, we will inform you via email.

How much is my donation 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.

CHARITY-FACING FAQS

How long does it take to process a donation?Expect an average of 45 days to process a noncash item. Jewelry, art and unique items may take a little longer. High value vehicles take a little longer.

Can you return the donation to the donor?Donations are irrevocable transfers, so returning one (revoking the transfer) undermines the authenticity of the initial transaction. The return suggests the gift was never a donation at all, and thus poses a risk to iDonate Charitable Foundation’s good standing since the charity issued a contribution receipt formally recognizing the transaction as a donation.

Questions?P l e a s e c o n t a c t i D o n a t e a t 8 7 7. 8 97. 4 2 7 3 o r d o n a t i o n @ i d o n a t e . c o m w i t h q u e s t i o n s .


noncash 101 · how the general noncash donation process works once a donor enters a donation on...

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