Charitable Donation Appraisals

Qualified appraisals supporting IRS Form 8283 for gifts of fine art, silver, jewelry and collections to Twin Cities museums, universities and nonprofits. Noncash contributions over $5,000 generally require a qualified appraisal by a qualified appraiser, on a fair market value basis.

Substantiating a Noncash Contribution

When a donor gives tangible property rather than cash, the deduction has to be substantiated. Noncash charitable contributions with a claimed value over $5,000 generally require a qualified appraisal by a qualified appraiser, with Section B of IRS Form 8283 completed and signed by both the appraiser and the receiving organization.

We prepare those reports for Twin Cities donors and their advisers — gifts to Minneapolis and St. Paul museums, university collections, historical societies and local nonprofits — from our gallery in Edina. Our reports are prepared by a qualified appraiser as defined under IRS regulations, in accordance with the substance and principles of USPAP.

What Makes an Appraisal "Qualified"

• Prepared in accordance with the substance and principles of USPAP
• Prepared by a qualified appraiser as defined under IRS regulations
• Sets out the appraiser's education and experience in the relevant category
• Describes the donated property, its condition and the valuation method used
• States fair market value as of the contribution date, with supporting comparables
• Carries the appraiser's signed declaration of qualification

Get the Appraisal Before the Return Is Due

A qualified appraisal must be obtained before the due date, including extensions, of the return on which the deduction is first claimed. A report commissioned after that point does not cure the problem, and a deduction can be lost on timing alone.

In practice, arrange the appraisal close to the contribution itself, while the property is still accessible and its condition can be recorded first-hand. Most reports are delivered within two weeks, and fees are billed hourly starting at $150 — never contingent on the values concluded, which for a donation appraisal is both an ethics requirement and the reason the report holds up.

Fair Market Value Applies

Donation appraisals are written on a fair market value basis — the price the property would change hands for between a willing buyer and a willing seller, neither under compulsion. That is the same basis used for estate reporting, and it is not the same as retail replacement value.

Our conclusions are grounded in current auction market evidence for the category, drawn from the same specialist research our cataloguers use, including our Silver Mark Database and Jewelry Mark Database. For the contrasting bases, compare our estate and tax appraisals and insurance appraisals.

Disclaimer

The information on this page is general in nature and is not tax or legal advice. IRS requirements for noncash charitable contributions change and depend on the specific facts of a gift. Donors should consult their own tax adviser or attorney about their particular circumstances before claiming a deduction.

Frequently Asked

When does the IRS require a qualified appraisal for a donation?

Noncash charitable contributions with a claimed value over $5,000 generally require a qualified appraisal by a qualified appraiser, with Section B of IRS Form 8283 completed and signed by the appraiser and the receiving organization.

What makes an appraisal ‘qualified’?

It must be prepared in accordance with the substance and principles of USPAP by a qualified appraiser as defined under IRS regulations, describe the property and the valuation method, state fair market value as of the contribution date, and include the appraiser's education, experience and signed declaration of qualification.

How early should the appraisal be obtained?

The appraisal must be obtained before the due date, including extensions, of the return on which the deduction is first claimed. In practice, arrange it close to the contribution date rather than waiting for tax season.

What value basis applies to a donation?

Fair market value — what the property would sell for between a willing buyer and a willing seller. Retail replacement value, the basis used for insurance, is not the correct measure for a charitable contribution deduction.

Planning a Gift of Art, Silver or Jewelry?

Tell us what is being donated, which organization is receiving it, and the tax year involved. We work with donors, CPAs and financial advisers throughout Minneapolis, St. Paul and the surrounding suburbs from our Edina gallery. Contact our appraisal team or see all appraisal services.