Nonprofit Law/Car donation

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Question
I am the President of an animal welfare non profit organization (501 c 3 per IRS). I would like to donate my truck to this organization but I am not sure if the IRS would consider this a conflict of interest, or what the law says regarding this type of donation.

Could you clarify the situation for me.

Thanks so much for your service.

Answer
 A conflict of interest is present whenever a director, and in
some states an officer) or a close relative of that person has a
material personal interest in a proposed contract or transaction
to which the 501(c)(3) organization may be a party. Some conflicts
do not result in any illegality. We would need to look at the
decisions of the organization or the Directors to decide if their
actions are illegal. This forum is only for federal tax questions
regarding 501(c)(3) public charities as I have explained in my
profile.

The IRS has published at
www.irs.gov/irm/part7/irm_07-025-003-cont02.html#d0e4718
---Start of Excerpt--
Where an exempt organization engages in a transaction with an
insider and there is a purpose to benefit the insider rather than
the organization, inurement occurs even though the transaction
ultimately proves profitable for the exempt organization. The test
is not ultimate profit or loss but whether, at every stage of the
transaction, those controlling the organization guarded its
interests and dealt with related parties at arm's-length.
---End of Excerpt--

Your organization does not value the property and does not indicate any value on the receipt. An officer of the organization would simply give you an acknowledgment of the make and model and whether new or used. See the IRS Publication "Charitable Donations --- Substantiation
and Disclosure Requirements"
http://www.irs.gov/pub/irs-pdf/p1771.pdf
on pdf page 5
---Start of Excerpt--
... an organization can assist
a donor by providing a timely, written statement containing
the following information:
1.  name of organization
...
3. description (but not the value) of non-cash contribution
4.  statement that no goods or services were provided by the
organization in return for the contribution, if that was the
case
---End of Excerpt--

Therefore, there is no conflict of interest.  The details, for the organization are in IRS Publication "A Charity's Guide to Vehicle Donations" which is available at http://www.irs.gov/pub/irs-pdf/p4302.pdf

and the information for donors is in the companion Publication 4303 which is available at
http://www.irs.gov/pub/irs-pdf/p4303.pdf

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic

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I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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