Can donating to any numismatic organization or museum result in a tax break?

Zoins

If coins are donated to a numismatic organization like the ANA, ANS or Smithsonian, can a tax deduction be claimed?

jmlanzaf

@Zoins said:
If coins are donated to a numismatic organization like the ANA, ANS or Smithsonian, can a tax deduction be claimed?

If they are a 501c

Zoins

Good to know. Looks like all 3 organizations are 501(c)(3) organizations.

ANA

https://www.money.org/election

The American Numismatic Association is a nonprofit, educational organization and is recognized under the Internal Revenue Service Code as a 501(c) (3) tax-exempt organization. It is governed by a nine-member Board, which includes a president, vice president, and seven governors at large. The ANA's federal charter, granted in perpetuity by the United States Congress, rests control of the Association in the hands of this Board.

ANS

http://numismatics.org/about/generalinformation/

The American Numismatic Society, organized in 1858 and incorporated in 1865 in New York State, operates as a research museum under Section 501(c)(3) of the Internal Revenue Code and is recognized as a publicly supported organization under section 170(b)(1)(A)(vi) as confirmed on November 1, 1970. The original objectives of the ANS, "the collection and preservation of coins and medals, the investigation of matters connected therewith, and the popularization of the science of Numismatics,” have evolved into the mission approved by the Society‘s Board of Trustees:

"The mission of The American Numismatic Society shall be to promote and advance the study, research, and appreciation of numismatics.”

Smithsonian

https://www.sifacilities.si.edu/ae_center/design-sustainability.html

The Smithsonian Institution is a trust instrumentality of the United States (recognized as a tax exempt organization under Section 501(c) (3) of the Internal Revenue Code).

2ndCharter

Don't forget us Paper Money guys! The Society of Paper Money Collectors (SPMC) is also recognized as a tax exempt organization under Section 501(c)3 of the IRS Code.

spmc.org

Coinosaurus

If donating a substantial amount of material, you should get an independent appraisal from a full-time numismatist. Also, you should be able to demonstrate proof of payment for said appraisal. Not saying it won't work otherwise, but in case of audit it's best to come in with the strongest case possible.

Hemispherical

Go to the approving authority (IRS) and do a lookup. Anyone can say or write they are a charitable organization but the IRS maintains a database of all the APPROVED organizations:

https://www.irs.gov/charities-non-profits/charitable-organizations

How or why would an organization lose their status? Forgot to do the paperwork, especially when there is a change over of people and the ONE person who knew how to do it literally took it to the grave. It happens.

shorecoll

According to my accountant, how much you can claim depends on what they plan to do with it. If they are going to send to auction, that's the value you can claim. Any debate on this is appreciated.

BStrauss3

Your accountant is correct... you can deduct the fair market value of your contribution. If an auction establishes an actual price, that's your deduction. Otherwise, you need to use a reasonable price guide, informed estimate, etc.

Zoins

Just read that the Josiah Lilly estate donated gold coins to the Smithsonian and received a $5,534,806 tax break! But this was possible only with special legislation:

To make the donation possible, the Indiana Congressional delegation introduced special legislation to authorize that the estate receive a $5,534,806 USD tax credit for the coins.

https://coinweek.com/auctions-news/smithsonian-event-and-stacks-bowers-auction/

Mark

@zoins And the "amusing" thing about the Lilly donation is that at least some of the coins were totally fraudulent. Thank you John Ford ...

messydesk

@jmlanzaf said:

@Zoins said:
If coins are donated to a numismatic organization like the ANA, ANS or Smithsonian, can a tax deduction be claimed?

If they are a 501c

501(c)(1, 3, 8, 10, and 13), only. 501(c) simply means non-profit. There are 29 different classifications, and only a few let you take a tax deduction for contributions.

sellitstore

Is there an attorney among us who has handled this type of donation and could help others who wish to do the same?

Treashunt

@sellitstore said:
Is there an attorney among us who has handled this type of donation and could help others who wish to do the same?

You don't need an attorney, just a good accountant.

Unless we are talking about big bucks, or transfers of title.

Or, trusts &/or estates

BStrauss3

Donations in cash are easy to deduct. Donations other than cash need an estimated valuation that (if the IRS asks) is defensible. Either way, they are subject to limits due to the recent tax law changes.

This applies all the way up and down the donations chain - that's why Goodwill no longer gives you an itemized receipt with the value - they'll give you a receipt, but YOU have to figure out the value of that coat.

mustangmanbob

Be careful on value versus purchase price. If you buy a box of 100 1986-D MS67 Red Lincoln for $2 each at the coin show, and there are a boat load more at that price, and think you can donate at the PCGS Value of $20, be careful.

Value versus Value can get you in serious trouble. Stamps donate against the Scott Catalog Value are even worse.

Coinosaurus

There is a former, well-respected coin professional now working for the IRS on collectibles valuation, so they are not idiots on this point.

tyler267

Best to get this kind of advice from your CPA or Tax Attorney, but here is a basic overview.

501 c 3 is a type of charity that is approved by the IRS to accept tax deductible donations

You need a qualified appraisal if the value of the item or group of items exceed $5,000. There are rules on who can perform the appraisal, Appraisal has to be done before the donation and close to the time of the donation

You have to have owned the items for at least one year

The donation has to be properly disclosed on the Tax return, the IRS has the right have an expert review the appraisal

Taxpayer has to itemize to get the deduction

The IRS imposes severe penalties for overstating Fair market Value of these types of donations

If I remember correctly In the 1980s or 1990s there was an ongoing scheme where a large dealer was selling coins and art to taxpayers who were donating the items to a specific museum. the museum was overstating the value of the items, resulting in larger tax breaks to the taxpayers than they paid for the items. It ended badly for everyone involved and is one of the reasons the rules and penalties for claiming improper valuation of appreciated property donations are as strict as they are.

BStrauss3

Do you know what they call people who take tax advise from anonymous internet people?

The defendant...

tyler267

@BStrauss3 said:
Do you know what they call people who take tax advise from anonymous internet people?

The defendant...

I agree, and I will be happy to represent them in tax court.