We've found two references that say specifically that donated space is
*not* tax-deductible.  They are:

1) "Museum Law" (Marilyn E. Phelan, Kalos Kapp Press, 1994).  "A
deduction is not permitted for a gift of a donor's services.  [footnote
omitted] Further, a donor cannot take a charitable contribution deduction
for the donation of a right to use the donor's property.  [footnote
omitted]  Example 3.  A donor permits a museum to use two floors of the
donor's office building rent-free.  The donor may not deduct the rental
value of the two floors furnished the museum because the donor only
transferred a right to use the property."  (p. 36)

2.  "Tax Economics of Charitable Giving" (Arthur Andersen & Co., 11th
Edition, 1991).  "Use of Property.  The gift to a charitable organization
of the right to use property does not yield a tax deduction to the donor,
since such rights are defined specifically by law as partial interests in
property [footnote omitted] ... Thus, a gift to a charity of the
rent-free use of office space will not entitle the donor to a charitable
deduction for the value of that use."  (p. 20)

Obviously, the use of property does have a value, but that doesn't make
it deductible.

If this posting causes consternation, given that some folks out there know
of donors who have taken a deduction for such gifts, please let us know
and we can try to ascertain whether there are circumstances in which
deductibility is permitted.

Andy Finch
Barry Szczesny
AAM Government Affairs
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