IRS Material: Donations-Non Cash

Pub 17

If you give property to a qualified organization, you generally can deduct the fair
   market value of the property at the time of the contribution. See Contributions of
   Property, later in this chapter.

   Your deduction for charitable contributions is generally limited to 50% of your
   adjusted gross income, but in some cases 20% and 30% limits may apply. 

     Contributions From Which You Benefit (Payments partly for
   goods or services)

   If you receive a benefit as a result of making a contribution to a qualified
   organization, you can deduct only the amount of your contribution that is more
   than the value of the benefit you receive. Also see Contributions From Which
   You Benefit, under Contributions You Cannot Deduct, later. 

   If you pay more than fair market value to a qualified organization for merchandise,
   goods, or services, the amount you pay that is more than the value of the item can
   be a charitable contribution. For the excess amount to qualify, you must pay it with
   the intent to make a charitable contribution. 

Athletic events. If you make a payment to, or for the benefit of, a college or
   university and, as a result, you receive the right to buy tickets to an athletic event in
   the athletic stadium of the college or university, you can deduct 80% of the
   payment as a charitable contribution. 

   If any part of your payment is for tickets (rather than the right to buy tickets), that
   part is not deductible. In that case, subtract the price of the tickets from your
   payment. 80% of the remaining amount is a charitable contribution. 

Charity benefit events. If you pay a qualified organization more than fair market
   value for the right to attend a charity ball, banquet, show, sporting event, or other
   benefit event, you can deduct only the amount that is more than the value of the
   privileges or other benefits you receive. 

   If there is an established charge for the event, that charge is the value of your
   benefit. If there is no established charge, your contribution is that part of your
   payment that is more than the reasonable value of the right to attend the event.
   Whether you use the tickets or other privileges has no effect on the amount you can
   deduct. However, if you return the ticket to the qualified organization for resale,
   you can deduct the entire amount you paid for the ticket. 

   Even if the ticket or other evidence of payment indicates that the payment is a
   "contribution," this does not necessarily mean you can deduct the entire amount. If
   the ticket shows the price of admission and the amount of the contribution, you can
   deduct the contribution amount. 

   Example. You pay $40 to see a special showing of a movie for the benefit of a
   qualified organization. Printed on the ticket is "Contribution--$40." If the regular
   price for the movie is $8, your contribution is $32 ($40 payment - $8 regular
   price). 

   Membership fees or dues. You may be able to deduct membership fees or dues
   you pay to a qualified organization. However, you can deduct only the amount that
   is more than the value of the benefits you receive. You cannot deduct dues, fees, or
   assessments paid to country clubs and other social organizations. They are not
   qualified organizations. 

   Certain membership benefits can be disregarded. Both you and the
   organization can disregard certain membership benefits when they are provided in
   return for an annual payment of $75 or less to the qualified organization. You can
   pay more than $75 to the organization, if the organization does not require a larger
   payment for you to receive the benefits. The benefits covered under this rule are: 

      1.Any rights or privileges, other than those discussed under Athletic events
        earlier, that you can use frequently while you are a member, such as: 
           a.Free or discounted admission to the organization's facilities or events, 
           b.Free or discounted parking, 
           c.Preferred access to goods or services, and 
           d.Discounts on the purchase of goods and services; 
      2.Admission, while you are a member, to events that are open only to
        members of the organization, if the organization reasonably projects that the
        cost per person (excluding any allocated overhead) is not more than $6.90
        (for 1997 events). This amount may be adjusted annually for inflation. 

   Token items. You can deduct your entire payment to a qualified organization as a
   charitable contribution, if both of the following are true: 

      1.You receive: 
           a.As a result of the payment, low-cost items such as bookmarks,
             calendars, mugs, or caps that have on them the organization's name or
             logo, or 
           b.A low-cost item that you did not order and can keep even if you do
             not make a contribution. 
      2.The qualified organization correctly informs you that the value of the item you
        received is not substantial and that you can deduct your payment in full. 

   Written statement. A qualified organization must give you a written statement if
   you make a payment to it that is more than $75 and is partly a contribution and
   partly for goods or services. The statement must tell you that you can deduct only
   the amount of your payment that is more than the value of the goods or services
   you received. It must also give you a good faith estimate of the value of those
   goods or services. 

   The organization can give you the statement either when it solicits or when it
   receives the payment from you. 

   An organization will not have to give you this statement if one of the following is
   true: 

      1.The organization is: 
           a.The type of organization described in (5) under Types of Qualified
             Organizations, earlier, or 
           b.Formed only for religious purposes, and the only benefit you receive
             is an intangible religious benefit (such as admission to a religious
             ceremony) that generally is not sold in commercial transactions
             outside the donative context. 
      2.You receive only low-cost items as described under Token items, earlier. 

   Expenses Paid for Student Living With You 

   You may be able to deduct some expenses of having a student live with you. You
   can deduct qualifying expenses for a foreign or American student who: 

      1.Lives in your home under a written agreement between you and a qualified
        organization as part of a program of the organization to provide
        educational opportunities for the student, 
      2.Is not your dependent or relative, and 
      3.Is a full-time student in the twelfth or any lower grade at a school in the
        United States. 

   You can deduct up to $50 a month for each full calendar month the student lives
   with you. Any month when conditions (1) through (3) above are met for 15 days or
   more counts as a full month. 

   Mutual exchange program. You cannot deduct the costs of a foreign student
   living in your home under a mutual exchange program through which your child will
   live with a family in a foreign country. 

   Out-of-Pocket Expenses in Giving Services

   You may be able to deduct some amounts you pay in giving services to a qualified
   organization. The amounts must be: 

        Unreimbursed, 
        Directly connected with the services, 
        Expenses you had only because of the services you gave, and 
        Not personal, living, or family expenses. 

   Conventions. If you are a chosen representative attending a convention of a
   qualified organization, you can deduct actual unreimbursed expenses for travel and
   transportation, including a reasonable amount for meals and lodging, while away
   from home overnight in connection with the convention. However, see Travel,
   later. 

   You cannot deduct personal expenses for sightseeing, fishing parties, theater
   tickets, or nightclubs. You also cannot deduct travel, meals and lodging, and other
   expenses for your spouse or children. 

   You cannot deduct your expenses in attending a church convention if you go only
   as a member of your church rather than as a chosen representative. You can
   deduct unreimbursed expenses that are directly connected with giving services for
   your church during the convention, but you cannot claim the cost of your evening at
   the theater. 

   Uniforms. You can deduct the cost and upkeep of uniforms that are not suitable
   for everyday use and that you must wear while performing donated services for a
   charitable organization. 

   Foster parents. You can deduct some of the costs of being a foster parent (foster
   care provider) if you have no profit motive in providing the foster care and are not,
   in fact, making a profit. 

   You can deduct expenses that are: 

      1.Greater than any nontaxable payments you receive to provide foster care for
        individuals placed in your home by a charitable organization, and 
      2.Spent to provide support for those individuals. 

   Car expenses. You can deduct unreimbursed out-of-pocket expenses, such as
   the cost of gas and oil, that are directly related to the use of your car in giving
   services to a charitable organization. You cannot deduct any part of general repair
   and maintenance expenses, depreciation, registration fees, or the costs of tires or
   insurance. 

   If you do not want to deduct your actual expenses, you can use a standard rate of
   12 cents a mile to figure your contribution. 

           Beginning in 1998, the standard mileage rate increases to 14 cents
           per mile. 

   You can deduct parking fees and tolls, whether you use your actual expenses or
   the standard rate. 

   You must keep reliable written records of your car expenses. For more
   information, see Car Expenses under Records To Keep, later. 

   Travel. Generally, you can claim a charitable contribution deduction for travel
   expenses necessarily incurred while you are away from home performing services
   for a charitable organization only if there is no significant element of personal
   pleasure, recreation, or vacation in such travel. This applies whether you pay the
   expenses directly or indirectly. You are paying the expenses indirectly if you make
   a payment to the charitable organization and the organization pays for your travel
   expenses. 

   The deduction for travel expenses will not be denied simply because you enjoy
   providing services to the charitable organization. Even if you enjoy the trip, you can
   take a charitable contribution deduction for your own travel expenses if you are on
   duty in a genuine and substantial sense throughout the trip. However, if you have
   only nominal duties relating to the performance of services for the charity, or for
   significant portions of the trip you are not required to render services, you cannot
   deduct your travel expenses.