C.4. Form 8282 (Donee Information Return) Spring 1992 Development Policy and Administration Manual Chapter IV. Gift Administration Procedures Section C. General Information About Noncash Gifts ************************************************************* FORM 8282 (DONEE INFORMATION RETURN) A charity that has signed an appraisal summary (Form 8283; see Section IV: C.2) must file a Donee Information Return (Form 8282; see sample at the end of this section) if it sells, exchanges, or otherwise transfers the gift within a two-year period after the contribution. The information return must be filed on or before the 125th day after the disposition of the gift, and a copy must be supplied to the donor. To assist the donee in complying, donors are required to provide a copy of the completed Form 8283. The regulations provide two exceptions to the reporting require- ment. First, there will be cases when individual items are disposed of that were included in an appraisal as part of a collection of items whose aggregate value exceeded $5,000. If the declared value of the individual item on Form 8283 was less than $500, it is not necessary to report its disposition. Second, reporting is not required if the property is "consumed or distributed without consideration" (i.e., without receiving something in return) for a purpose that furthers the University's tax-exempt functions. For example, the University would not be required to report on the disposition of a gift if it was used in a class. It would, however, have to report its disposition if it was sold at an auction. Successor Donees The IRS has established regulations governing "successor donees", i.e., charities that receive property for less than fair market value, either from the original donee or another successor donee, which apply to certain transfers from Campus Foundations to the University. A donee that transfers charitable deduction property to another charity must furnish the successor donee with its own name, address, and taxpayer identification number, as well as a copy of Form 8283 as originally submitted by the donor, within 15 days after the latest of three actions: the transfer; the date it signs Form 8283; or the date it receives Form 8283 from a preced- ing donee, if any. It must also report the transfer within 125 days to the IRS using Form 8282 and must furnish the successor donee, and the donor, with a copy of Form 8282 within 15 days of filing with the IRS. Effective July 6, 1988, when a successor donee receives the property, it also inherits the reporting requirements that go along with the property. Thus, for example, if a gift of real property is given to a Campus Foundation and title is subse- quently transferred to The Regents, who in turn sell the property, the Campus Foundation would use Form 8282 to report the transfer, and The Regents would be required to file Form 8282 with the IRS if the property were sold within two years of the date of the original gift. Penalties [The penalty for failure by a recipient institution to furnish the required information report to the IRS is $50 per failure plus 5% of the value of the items that should have been reported; failure to furnish a copy to the donor is subject to a penalty of $50. Failure to include all of the correct information required by Form 8282 (e.g., the donor's taxpayer identification number) is subject to a penalty of $5 for each failure.] The IRS's ability to waive penalties is more limited than under previous IRS regulations.