In-Kind Gifts

Gifts-in-kind are gifts of tangible personal property such as physical materials, supplies, equipment, or services.

Gifts of Equipment and Material

Luther College encourages and appreciates gifts-in-kind, such as computer hardware and software, industry equipment, supplies for laboratories, library archive collections, musical instruments, works of art, and other materials that the college would otherwise need to purchase. Through gifts-in-kind, supporters help the college strengthen programs and improve facilities to provide the best possible educational experience to our students.

While in-kind donations are often received from businesses and corporations, individual donors also contribute many types of in-kind gifts.

Acceptance Policy

All gifts-in-kind are reviewed, accepted, and officially acknowledged in accordance with the college’s Gift Acceptance Policy. Prior to acceptance, the gift is reviewed to see if it meets campus needs. The college reserves the right to decline any gift that does not further the college’s goals or may involve special maintenance or other conditions the college would be unable to satisfy. The donor is responsible for making arrangements to deliver the gift. Additional approvals are required for gifts of art.

Appraisal Guidelines

Luther College does not provide gift valuation. In accordance with Internal Revenue Service regulations, the donor is responsible for determining the fair market value of an accepted gift.

• If the estimated fair market value of the gift is under $5,000, then documentation used to establish the fair market value would need to be provided (e.g., a copy of either [1] paid bill of sale, [2] the invoice and copy of check, or [3] the invoice and copy of statement showing payment).
• If the estimated fair market value of the gift exceeds $5,000, then a qualified appraisal is required by the IRS to substantiate a donor’s charitable deduction for gifts-in-kind. In addition, an IRS Form 8283 must be completed by the donor, college, and the appraiser. College personnel are not qualified appraisers, and federal regulations do not permit the college to give appraisals or estimates of value.

We encourage you to consult with a tax adviser to determine the deductibility of your gift-in-kind according to IRS regulations. It is the responsibility of the donor to substantiate the value for their own tax purposes.

Additional information about appraisal requirements can be found in IRS Publication 561, available here. For taxation details, see IRS Publication 526, available here.

For More Information

To discuss gifts-in-kind, please contact Nathan Ersig, senior director of development, at 563-387-1510 or nersig@luther.edu.