C.2. Form 8283 (Noncash Charitable Contributions Form)
     Spring 1992

Development Policy and Administration Manual 
Chapter IV. Gift Administration Procedures 
Section C. General Information About Noncash Gifts   
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            FORM 8283 (NONCASH CHARITABLE CONTRIBUTIONS FORM)


Following is a description of the use of Form 8283.  This summary
is not intended to provide in detail all the responsibilities of
donors, and donors should be advised to consult a tax advisor or
IRS Publication 561, Determining the Value of Donated Property,
for more information.  


When to Use Form 8283 

Whenever a deduction exceeding $500 is claimed for a noncash
gift, the donor must file Form 8283, Noncash Charitable Contribu-
tions Form (see sample at the end of this section) with the tax
return. 


Completing Form 8283

Form 8283 is to be completed for other noncash gifts as follows.


Section A.  Section A must be completed for gifts of real or
personal property or nonpublicly traded securities with a claimed
value in excess of $500 but not in excess of $5,000.  Gifts of
publicly traded securities, which should be reported in Section A
of Form 8283 even if their value exceeds $5,000, are:

   (1)  securites listed on an exchange in which quotations are
        published daily;

   (2)  securities regularly traded in national or regional
        over-the-counter markets for which published quotations
        are available; or

   (3)  securities that are shares of a mutual fund for which
        quotations are published on a daily basis in a newspaper
        of general circulation throughout the United States.

A qualified appraisal or an appraisal summary is not required for
these publicly traded securities.  


Section B (Appraisal Summary).  Donors must complete Section B
when claiming a charitable deduction in excess of $5,000 for a
noncash gift (except those publicly traded securities reportable 
in Section A).  A separate Form 8283 is required for each item  
that is donated, although a group of similar items that can be 
considered in the aggregate (i.e., property of the same generic
category, such as a group or number of stamps, coins, litho-
graphs, or books) should be treated as a single gift.  If the
donor contributes items to more than one institution, a separate
Form 8283 must be submitted for each donation, even if the value
of items given to one institution is less than $5,000.

Besides completing Section B, donors must obtain a qualified
written appraisal (see Section IV: C.3) for noncash donations
whose claimed value exceeds:

 (1)  $5,000 for any single item of personal or real property;

 (2)  $5,000 in the aggregate for similar items of property
      whether donated to one or more institutions; or
      
 (3)  $10,000 for nonpublicly traded securities (although an
      appraisal is recommended for nonpublicly traded stock
      valued between $5,000 and $10,000).

In determining whether a particular gift falls within these
criteria, the key word is "claimed value"; for example, if a
donation is made of a remainder interest whose value to the
University (and charitable deduction claimed therefor) is less
than $5,000, no appraisal is necessary, even if the value of the
item itself exceeds $5,000.

For gifts made after June 6, 1988, the appraisal summary must
disclose whether the donation involved a bargain sale and, if so,
the amount the donor was paid. 

Donors must ensure that the appraiser signs Part IV of Section B,
Certification of Appraiser.  If donors have obtained more than
one appraisal, it is not necessary to use them all to substan-
tiate the deduction.

Donors are asked to retain a copy of the appraisal itself with
their other tax records but need only attach the appraisal
summary (Form 8283) to their returns, except in the case of art
work valued at more than $20,000; then it is necessary also to
attach a copy of the appraisal itself and an 8 x 10 inch color
photograph or a color transparency no smaller than 4 x 5 inches. 

If the donor is a partnership or an S corporation, the donor must
provide a copy of the completed Form 8283 to each partner or
shareholder who receives an allocation of the charitable deduc-
tion. 

Donee Signature Acknowledgment Section

The IRS regulations provide that the appraisal summary (Part B of
Form 8283) must include an authorized signature from the donee
organization.  The donee organization should not sign Form 8238
until the donor or the appraiser has completed the required
description of the property.  (Note:  If property is given to a
charitable remainder trust, the trust is considered the donee,
and the trustee or a designee should sign Form 8283.)  The
institution's signature on Form 8283 represents only acknowl-
edgment of receipt of the items described in the Appraisal
Summary, and in no way indicates its agreement with or acceptance
of the amount claimed.

Donors are required to furnish the donee with a copy of the
completed Form 8283, and the donee must retain it "for so long as
it may be relevant to the administration of any internal revenue
law", i.e., normally three years unless the donor is audited.


Penalties for Donors

If the donor fails to submit Form 8283 with the tax return, the
deduction may be disallowed unless the failure was due to a good
faith omission.  The IRS allows donors 90 days to submit the
completed Form 8283 on request before the deduction is dis-
allowed.

If the claimed value is 200% or more of what the IRS allows and,
as a result, the donor underpaid tax by more than $5,000, the
penalty for the donor is 20% of the resulting tax underpayment. 
If the claimed value is 400% or more of what the IRS allows and,
as a result, the donor underpaid tax by more than $5,000, then
the penalty for the donor is 40% of the resulting tax under-
payment.  The penalty applies regardless of how long the donor
has owned the property.

The IRS's ability to waive penalties is more limited than under
previous IRS regulations.