When a donor gives property - such as land, vehicles, artwork, or other non-cash assets - your nonprofit may be asked to sign IRS Form 8283. This form can seem intimidating, but it’s actually quite straightforward once you understand who’s responsible for what.
This guide explains what the form is, when it’s required, and how to handle the process correctly from your nonprofit’s side.
What Is IRS Form 8283?
Form 8283 (Noncash Charitable Contributions) is the form a donor must file with the IRS when claiming a tax deduction for donated property valued at more than $5,000.
It’s designed to document the donation, the appraised value, and confirmation from the receiving nonprofit that the gift was accepted.
Key Point:
This is the donor’s form - not yours.
Your nonprofit’s role is simply to acknowledge receipt of the donated property by signing Section B, Part IV.
When Form 8283 Is Required
Donation Type | Donor Requirements |
Property valued at $5,000 or more | Donor must obtain a qualified independent appraisal to determine fair market value (FMV). |
Property valued at $500,000 or more | Donor must attach the full appraisal to their IRS tax return. |
Examples include donated real estate, vehicles or aircraft, fine art, technology, or large equipment.
Your Nonprofit’s Role
When a donor provides you with Form 8283:
Do not complete or verify the valuation.
You are not agreeing with the dollar amount — only acknowledging receipt of the gift.Sign Section B, Part IV (the “Donee Acknowledgment”).
This confirms that:You received the described property on the listed date.
You understand that if you dispose of the item within a few years, you must file Form 8282.
Keep a copy of the signed form for your records.
Important: Your signature does not validate the appraised value - it simply acknowledges that you received the item.
Understanding Your Responsibilities
1. You can never assign value.
Only the donor (and their appraiser) determine the fair market value.
If someone donates a used sock and claims it’s worth $12 million - that’s their issue, not yours.
2. Make sure the title and ownership are properly transferred.
If the donation involves titled property (like land, vehicles, or aircraft), confirm that ownership has legally changed to your organization.
3. Provide a donor acknowledgment letter.
This letter should:
Describe the item donated (e.g., “one single-engine aircraft, tail number ABC123”)
State the date received
Include the required IRS language:
“No goods or services were provided in exchange for this contribution.”
Best practice: Send this acknowledgment immediately upon receipt - not months later - so you don’t forget.
4. If you later dispose of the property:
If your nonprofit sells, transfers, or disposes of the item within five years of receipt, you must file IRS Form 8282 to notify the IRS and the donor.
How to Record It Internally
Once you’ve accepted and signed for the donation, be sure to record it correctly on your books.
Accounting Steps:
Record non-cash contribution revenue equal to the appraised fair market value (FMV).
Book the donated item (e.g., aircraft) as a fixed asset at that same value.
Over time, depreciate the asset monthly using straight-line depreciation (usually over 10–20 years).
This spreads the expense out across the asset’s useful life.
It will appear as a “Fixed Asset (net of depreciation)” on your balance sheet.
Note: This affects your revenue and assets, but not your cash position.
Documentation to Keep:
Copy of the independent appraisal
Donor acknowledgment letter
Board resolution formally approving acceptance of the gift
Signed Form 8283
Title transfer or ownership documents
Keep all of these together in a secure folder for your audit trail and compliance.
Example: Donated Aircraft for Search & Rescue
If your organization receives an aircraft for search and rescue use:
The donor must obtain a qualified appraisal for IRS reporting.
You sign Section B of Form 8283 confirming receipt.
You record the fair market value as a non-cash contribution and a fixed asset.
You maintain insurance, maintenance records, and board approval documentation.
If you later sell the plane, you’ll file Form 8282 to report the change.
Quick Checklist
Step | Action |
Donor obtains appraisal | ✔️ |
Nonprofit receives and records donation | ✔️ |
Nonprofit signs Section B of Form 8283 | ✔️ |
Donor acknowledgment letter sent | ✔️ |
Title transferred and stored | ✔️ |
Asset recorded and depreciated | ✔️ |
Form 8282 filed if property disposed of within 5 years | ✔️ |
Final Takeaway
IRS Form 8283 is the donor’s responsibility - your role is simply to acknowledge the donation and maintain clean records.
By handling it carefully, you protect both your nonprofit and your donor while keeping your books compliant.