Gifts In Kind

Gifts in kind are a wonderful way of benefiting Mercy Neighborhood Ministries of Philadelphia, Inc. (MNM) Gifts in kind include donations of property other than cash and marketable securities such as real estate, books, equipment, supplies, furnishings and even Afro-Centric Artwork to beautify and inspire those who come to the Mercy Family Center. Other gifts in kind include services such as printing and mailing.

A gift in kind requires an official transfer of ownership of property from the donor to MNM . The IRS requires the donor to determine the fair market value of the gift for individual, foundation, or corporate tax reporting purposes. MNM will issue a gift in kind receipt consisting of a simple description of the donated property. MNM will recognize the donor for the value of the gift without referencing or receipting a specific dollar amount.

Gifts in kind that have a fair market value of more than $5,000 require the completion of IRS Form 8283. Acceptance of a gift in kind is made by Ann Provost, RSM, Executive Director at Mercy Neighborhood Ministries of Philadelphia, Inc.

Corporate gifts in kind of $25,000 or more should be substantiated by a detailed list of the donation. The substantiation may be in the form of signed correspondence from the corporation. The fair market value, as determined by the corporation, will be the dollar amount which is booked for recognition purposes.

How to give a gift in kind

• The asset must be placed in the physical possession of Mercy Neighborhood Ministries of Philadelphia, Inc.
• The Gift In Kind Donor Form should be completed. Our Development Office will assist in this process, allowing the donor to determine fair market value and fill in the description of the gift in the space provided. IRS regulations require the donor to determine the fair market value. For corporate gifts of $25,000 or more, a letter from a representative of the corporation stating the fair market value with an accompanying inventory of the donated property is acceptable.
• When the fair market value is over $5,000, the donor is required to fill out IRS Form 8283, attach a qualified appraisal when instructed and complete the form by a signed declaration of appraiser. The IRS Form 8283, which is acknowledged by our Executive Director, will be returned to you with the gift receipt. MNM recommends that the donor consult with his/her tax advisor to determine the appropriate tax consequences of any charitable contribution.
• The MNM-issued gift receipt will make no reference to the fair market value of the gift in kind, only a brief description of the donated property. MNM will record the fair market value for recognition purposes only.
• Donors are asked to complete, sign and return the Gift In Kind Donor Form.

Contact information:

If you have questions or would like more information on making a gift in kind to Mercy Neighborhood Ministries of Philadelphia, Inc. contact:

Denise Hay
Director of Development
215.227.4393
dhay@mercyneighbors.org