A gift-in-kind (GIK) is a voluntary transfer of property other than cash without consideration. This means that the donor is not receiving a service or item of value in exchange for the property. However, when giving a GIK to a charity the donor receives a donation receipt for the fair market value of the property.

All theses types properties may be considered when making an in-kind donation:

  • Real estate
    • A primary residence
    • A second home
    • Time-shares
    • Vacant land
    • Residential income property
    • Commercial or industrial property
  • Stocks
  • Bonds
  • Art
  • Personal items

Items that are considered as gifts-in-kind must have a substantial value. Items such as hobby crafts or home baking (which have little value) cannot be considered as a gift-in-kind.

There is a way to reduce the probate taxes and taxable income to the estate by gifting property to a charity.

By gifting a property to a charity:

  • The estate is not responsible for any capital gain that may be due on the property.
  • A charitable receipt is issued for the full Fair Market Value (FMV) of the gift, which in most cases is the FMV at the date the property is transferred to the charity.
  • Estate and probate taxes are reduced.

This means that by gifting property to a charity, such as Global Aid Network, will reduce tax implications to the estate.

Want to learn more about Gift-in-Kind? Contact us here