If a grantor would like to donate a valuable collection to a charity they will need to find a charity that is the right fit and will accept the gift. Some charities might not want to accept the gift, or they may only want a few items in the collection. The Federal and State tax implications will depend on the time the grantor donated the gift and if that donation was made during the person’s life. It is important to think about the gifts Fair Market Value (FMV), and the effect that has on tax consequences. A person thinking about donating a collection to charity should have a conversation with the organization about the terms in advance; it is also a good idea to draft a gift agreement with the charity.
See Carol Kroch, Donating a Collection To Charity, Wealth Management, June 9, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
