Hey Everyone-
   I'm writing the list in hopes of someone knowing the answer to a donation/tax deduction question that I have.  We have a donor who wishes to donate an item that we are only taking into our Education Collection/For Use Collection.  These are normally items that are either duplicates or reproductions we use for hands-on demonstrations/exhibit props.  These items obviously have a limited life span and are not handled/cared for in the same manner as those in our permanent collection.  This donor, however, is still wishing to take a tax deduction.  Is this allowed?  My concern is the "Note" section of the 8283 Instruction form- I have copied this below for any and all of you who would like to review the statement:

       "Note: If it is reasonable to expect that donated tangible personal property will be used for a purpose unrelated to the    purpose or function of the donee, the donee should check the “yes” box in Part IV. In this situation, your deduction will be limited. In addition, if the donee (or a successor donee) organization disposes of the property within 3 years after the date the original donee received it, the organization must file Form 8282, Donee Information Return, with the IRS and send a copy to the donor. (As a result of the sale by the donee, the donor's contribution deduction may be limited or part of the prior year contribution deduction may have to be recaptured. See Pub. 526.) An exception applies to items having a value of $500 or less if the donor identified the items and signed the statement in Section B, Part II, of Form 8283. See the instructions for Part II. "

My concern is that we may indeed have to dispose of the item within the 3 years if it falls apart from use.  I'm worried the donor will be upset if they then have to turn around and have part of their deduction 'recaptured'.  Does anyone have any thoughts on this?  Has anyone else dealt with this issue?  Any advice would be appreciated.

Thanks-
Gwen Haney

Community Collections Manager
Dayton History

=========================================================
Important Subscriber Information:

The Museum-L FAQ file is located at http://www.finalchapter.com/museum-l-faq/ . You may obtain detailed information about the listserv commands by sending a one line e-mail message to [log in to unmask] . The body of the message should read "help" (without the quotes).

If you decide to leave Museum-L, please send a one line e-mail message to [log in to unmask] . The body of the message should read "Signoff Museum-L" (without the quotes).