Under the law, allowable deductions for charitable contributions of vehicles, boats and airplanes (collectively referred to as “assets” in this summary) for which the claimed value exceeds $500 will depend how the asset is used by the recipient charity. If the organization sells the asset without any significant intervening use or material improvement, the donor’s deduction is limited to the gross sales proceeds received by the charity. But, if the organization uses the asset in direct furtherance of its charitable purpose the donor may deduct the “fair market value” of the asset. (According to the IRS, the donor, not the recipient charity, must determine the “fair market value” which the IRS describes as the price that a willing buyer and willing seller would agree upon if neither were pressured to do so. Assistance with vehicle values can be found at www.kbb.com Kelly Blue Book’s web site)

 If the charity intends to make significant use of the donated asset (such as providing a donated vehicle to be used by the charity or make material improvements), the required written acknowledgement must be provided within 30 days of the contribution and must certify: (1) the intended use and duration of such use or the material improvements to be made and (2) that the asset will not be transferred in exchange for money, other property, or services before completion of such use or improvements.