CHARITABLE DONATION APPRAISALS

A donation appraisal report is a written document that provides a detailed valuation of property or assets that are being donated to a charitable organization or nonprofit. The purpose of the report is to help the donor establish the fair market value of their donation for tax deduction purposes.

The donation appraisal report should include a description of the property or assets being donated, the valuation method used, and any relevant market data that was considered in determining the fair market value. The report should also include a statement that the appraisal was performed in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), which is a set of guidelines and standards that govern the appraisal profession.

It's important to note that the IRS requires that donation appraisals be performed by a qualified appraiser who meets specific education and experience requirements. The appraiser must also be independent and impartial, meaning that they have no personal interest in the property or assets being appraised.

When using a donation appraisal report for tax purposes, the donor must obtain the appraisal before filing their tax return and must include a copy of the report with their return. The donation must also be made to a qualified charitable organization.

Donors should keep in mind that the IRS may review donation appraisals and could challenge the valuation if they believe it is inaccurate. It's important to work with a reputable appraiser and to keep detailed records to support the donation and valuation.

Looking for a smart way to let go of some personal items? Donation might be a good option for you. Ask your accountant or financial adviser if donating personal property is the choice for you. If the answer is yes, then Princeton Appraisers will be happy to help you with the process. Our donation appraisal reports comply with Internal Revenue Service's (IRS) requirements and have never been questioned or rejected.

Some items that we have appraised for donation purposes include, but not limited to grand pianos, high-end clothing, fine and decorative art, automobiles, rugs, furniture, large quantities of unsold inventories, and other types of personal property. 

Read more: Frequently Asked Questions