Noncash donations like stock and crypto can significantly boost your nonprofit’s fundraising efforts, but they come with some unique IRS requirements. Read on to learn more about Form 8283 and how to confidently support your donors.
Accepting different types of donations – like noncash donations – bolsters your fundraising and leaves the door open for different types of generosity. However, there may be an additional step you need to take to ensure your donors receive their tax benefits.
That’s why it’s helpful for both nonprofits and donors to understand how Form 8283 works.
This guide explains everything you need to know about Form 8283 so you can make the process smooth and stress-free for your generous supporters.
Form 8283 (Noncash Charitable Contributions) is an IRS form that donors must fill out when they give more than $500 worth of noncash items to a nonprofit in a single tax year.
These noncash gifts can include things like stocks, cars, artwork, or property.
To legally claim these donations as a deduction on their federal tax return, the IRS requires donors to complete Form 8283 accurately.
Here’s where your nonprofit comes in! If a donor’s noncash gift is worth more than $5,000, the IRS requires your organization to sign the form. This signature confirms you received the donation and provides a level of accountability.
Without it, your donor’s deduction could be denied – something no supporter wants to experience.
Even though Form 8283 is technically the donor’s responsibility, your nonprofit needs to understand how it works, and here are a few reasons why:
If a donor doesn’t file Form 8283 correctly, their deduction could be denied, which might delay their tax return or cause other frustrations.
Your expertise can make all the difference! Help them submit accurate claims and avoid unnecessary IRS problems.
Let’s face it, tax forms can be confusing and overwhelming.
When you’re familiar with the process, you can answer questions with confidence and build credibility with your donors, especially those making major gifts.
Form 8283 typically comes into play with high-value gifts like property, vehicles, or stock.
When donors know your organization understands the process and is ready to help, they may feel more confident making noncash contributions, leading to bigger and more impactful gifts for your mission!
When a donor is completing Form 8283 for a noncash gift, they may need your help to make sure everything is filled out correctly, especially for contributions valued over $5,000.
Here’s how your nonprofit can support donors:
If a donor gives a noncash gift worth more than $5,000, they’ll need you to complete and sign Section B of Form 8283.
This includes providing the date of the donation and confirming that your organization received the item. Without this signature, the IRS may deny their deduction.
While not always required, many donors will request a written acknowledgment confirming receipt for their records.
This letter should include:
To streamline this process, tools like Donorbox help your nonprofit automatically send customized receipts for each donation.
Personalize the message with your organization’s branding and tax information, ensuring your donors receive timely and professional communication.
Automatic receipts not only save you time but also show donors that you care about their experience from start to finish!
Resource: Learn more about Donorbox automatic donation receipts.
For high-value gifts reported in Section B, the donor must also include a signature from a qualified appraiser. This appraiser must be someone who is not the donor, not your organization, and not connected to the transaction.
While you don’t need to provide this appraisal, being prepared to coordinate with appraisers shows professionalism and helps the process go smoothly.
Form 8283 is split into two main sections, and the one a donor completes depends on the total value of their noncash contribution.
Let’s take a look at each section:
Donors use Section A when the total value of their noncash gifts (like clothing, equipment, or small collectibles) is $5,000 or under.
This section is simpler, with no required appraiser or nonprofit signature. However, it still calls for detailed information, including:
When a donor gives more than $5,000 worth of noncash items, they must complete Section B. This section involves a few more steps and supporting documents.
Donors must provide:
When people think of fundraising, a cash donation is usually the first thing that comes to mind. But many donors choose to give noncash items, and these gifts can be just as valuable – if not more – for your nonprofit.
Accepting noncash gifts can open new doors of generosity for your nonprofit!
Here are four common types of noncash charitable contributions your organization may receive:
Giving stocks and cryptocurrency to your organization brings a multitude of benefits for your donors.
Whether it’s Bitcoin, Ethereum, other cryptocurrencies, or stock assets, these donations allow donors to double their tax benefits while providing a solid revenue stream for your organization.
Donating assets that have grown significantly in value allows donors to avoid paying capital gains taxes – plus they also receive tax deductions in return. It’s a win-win!
Add crypto and stock giving to your donation form with Donorbox’s integration with The Giving Block. Accept crypto alongside traditional gifts, plus manage and track those donations on your Donorbox dashboard.
Sign Up to Accept Crypto & Stock Donations!
Cars, trucks, RVs, and even boats can be donated. These gifts can be sold or repurposed by your nonprofit, depending on your needs and the condition of the vehicle.
High-value personal property like rare books, art, or jewelry can be donated, often requiring a qualified appraisal. These items may be auctioned or used in your nonprofit’s programs.
If your donors have questions about how to complete Form 8283 for their noncash contributions, share this easy, step-by-step guide with them:
Noncash charitable contributions involve a few extra steps during tax season, and being prepared to support your donors through the process builds trust, increases giving potential, and opens the door to more generous gifts.
Donorbox is a powerful donation platform designed to help nonprofits like yours accept and manage a variety of noncash contributions.
From stock and cryptocurrency to traditional in-kind gifts, Donorbox makes it easy to record, track, and acknowledge every donation, big or small.
Ready to expand your giving opportunities? Sign up or book a demo with Donorbox today to start receiving stock, crypto, and more, all through our streamlined donation tools.
With a background in professional writing, Lydia has over five years in nonprofit communications under her belt. Lydia’s passion for supporting nonprofits sparked during her college internships with global mission organizations, where she gained valuable insights into fundraising marketing strategies. These experiences have continued to fuel her dedication to empowering nonprofits through her writing.
Subscribe to our e-newsletter to receive the latest blogs, news, and more in your inbox.
Lydia Wohlgemuth