Donations
From Irving RACES/ARES Organization
This organization relies on donations and support from internal and external sources. There is no budget. What is being done is to maintain what we have, upgrade when possible, and add new resources when available. All members are constantly giving both in time and money/equipment and it creates a substantial drain. The Irving Amateur Radio Club is the primary supporter of this group (most of the RACES/ARES members are club members). Please click on the what's needed icon to see if you could help support this organization through your gift(s).
Donations made directly to the Irving RACES/ARES are classified as tax deductible by the IRS Code 170, under Civil Defense Organization.
If you are interested in making a donation here is a list of our future plans, and our immediate needs.
Equipment Donations as Tax Deductions
By Neil D. Friedman, N3DF 503 Kalmia Ave Boulder, CO 80304
Your generosity is greatly appreciated by schools and clubs that desperately need radio equipment to help new hams get started. But you have to face Uncle Sam's red tape before you claim a tax deduction.
Donating serviceable used radio equipment to a school that wants to establish a station is an excellent way to promote the growth of amateur Radio. It may also result in a tax deduction. This article describes the circumstances in which the IRS permits a deduction, how the amount is figured and what documentary evidence is needed to substantiate the deduction. It provides only general information; advice on specific situations should be sought from your tax advisor.
The Internal Revenue Code (Sec 170) allows taxpayers to deduct from their income contributions of cash or property (but not services) made to qualified organizations. The deduction is available only to taxpayers who itemize rather than taking the standard deduction. It's computed on Schedule A ("Itemized Deductions") to IRS form 1040.
A contribution, to be deductible, must be made to an organization, rather than to an individual. The organization must be domestic (that is US-based).
Complex regulations define which organizations qualify to receive deductible contributions. A partial list of qualified organizations include public and nonprofit private educational institutions; units of government (federal, state and local); houses of worship and associations of the same; civil defense organizations; and publicly supported charitable, religious, educational and scientific entities (such as museums, libraries, the Boy and Girl Scouts, and the Red Cross).
With regard to the status of other recipients, consult with officials of the organization and your tax advisor. Just because an organization is itself exempt from paying taxes doesn't necessarily mean that contributions to it may be deducted from the donor's income.
The amount of the deduction is "fair market value" of the radio equipment at the time of the donation.
This is defined as "the price at which the property would change hands between a willing buyer and a willing seller, neither being under an compulsion to but or sell and both having reasonable knowledge of relevant facts."
This amount could be established by appraisal, perhaps by an Amateur Radio retail dealer or by noting the sales prices for similar items in ham-ads, on dealers' used-equipment shelves, or at flea markets (keep detailed notes).
The amount of the deductions must be reduced by the value of any property or other tangible benefit received by the tax-payer as a result or making the donation.
The burden of substantiating deductions falls on the taxpayer. In the case of a donation valued below $500 overall, the taxpayer should be prepared to provide, at the request of the IRS, a receipt from the recipient organization. The receipt must state the name of the organization, the date and location of the donation, and a description of the property in reasonable detail. The taxpayer should also be prepared to provide written records indicating the fair market value of the equipment, how the value was determined (including a signed copy of any appraisal) and a copy of any agreement with the recipient organization as to the use or disposition of the equipment.
In the ease of a donation valued at least $500, but less than $5000 overall, the taxpayer should also be prepared to provide written records indicating the approximate date and the manner or his or her acquisition of the property (purchase, girt or inheritance) and, if the taxpayer owned the property for less than one year, the cost (or other tax basis 3) of the property. Section A of IRS form 8283 ("Noncash Charitable Contributions") must be completed and filed with the taxpayer's return.
In the case of a donation valued at $5000 or more overall, the taxpayer must obtain a qualified written appraisal of the equipment.4 Section B of IRS Form 8283, including a summary of the appraisal, must be completed and filed with the taxpayer's return.
Special limitations on deductions may apply to high income taxpayers (more than $100,000) and those contributing large percentages of their incomes. Consult your tax advisor.
Neil Friedman is an ARRL Life Member and an attorney who holds a Master of Laws degree in taxation.
Notes
Special rules apply to property that has increased in value over its purchase price or has been used in the taxpayer's business. Consult your tax advisor.
IRS Reg 1.170A-1(c)(2)
The basis of equipment received as a gift is the lesser of the cost paid by the giver or the equipment's value at the time of the gift. The basis of equipment received through inheritance is usually the equipment's value at the time of the prior owner's death.
The appraisal must meet numerous technical requirements. IRS Reg 1.170A-13 (c)(3).
For more information please visit the IRS Website.
