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Nonprofit Law/Office space donation

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Question
Our non profit is looking for office space and has been offered a donation of 1000 sf of home office space, including utilities. Is the donor/homeowner entitled to an in kind donation of $450/month?

Answer
If the utilities are metered and the donor is paying that amount then that would be considered a donation.
As for the space, no. See IRS Publication 526 "Charitable Donations" which is available
at http://www.irs.gov/pub/irs-pdf/p526.pdf especially on page 9 the IRS writes about "partial interests" under the heading "Partial Interest in Property" which means that donations of use are not deductible. Even if the landlord gives space for free to use the landlord does not receive a charitable deduction. "Example 1. You own a 10-story office build- ing and donate rent-free use of the top floor to a charitable organization. Since you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution."  That comes right from section 1.170A-7(a) of the
Income Tax Regulations. http://www.law.cornell.edu/cfr/text/26/1.170A-7

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. For me to consider your individual situation and how the law applies, I would need to gather more information.

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Harvey Mechanic

Expertise

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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