Donations and Gifts Tax Guide

Making a Donation

Generally making donations on behalf of the University follows the same guidelines as when an individual makes a donation to a charity. All or part of the donation may be deductible by Wake Forest University. Wake Forest requires that the donor receive an acknowledgement or receipt from the organization receiving the donation.

The acknowledgement should indicate the amount donated and what, if any, benefit was received for the donation.

For example, a $1,000 donation is made to an organization for 4 seats at a table at a benefit dinner. Only $900 is deductible by Wake Forest as a contribution since the cost of the meal, $100 ($25 each), is not deductible as a charitable contribution. This is called a “Quid Pro Quo Contribution.” The organization should provide to the department/donor a letter of acknowledgement or receipt that indicates the amount that is deductible as a charitable contribution. The letter of acknowledgement or receipt received for the donation should be forwarded to the Tax Office.

Please contact the Tax Office for more information on making donations on behalf of Wake Forest.

Receiving a Gift or Donation

The Advancement Office is responsible for accepting gifts and donations for Wake Forest University.

As a general rule for non cash charitable contributions over $500 the donor must have a Form 8283 (PDF) to file with their income tax return if they wish to take deduction for their contributions.  In addition, donors whose gifts are non-cash assets (other than publicly traded securities) and valued over $5,000 (separately or in aggregate) must obtain a qualified appraisal and have Form 8283 signed by the University Controller.  Form 8283 must be signed and provided to the donor prior to the initial filing of the donor’s tax return covering the year of the gift. Information about the Forms 8283 signed by the University during the year must be reported on the University’s tax return, therefore it is imperative that only the designated individual (Controller) sign these forms.  This ensures that the Controller’s Office has copies and the information necessary to file the WFU tax returns.

Under certain circumstances, if Wake Forest sells, transfers, exchanges or otherwise disposes of donated property within three years of the date of receipt of the property, Wake Forest must file Form 8282 (PDF) (Donee Information Return) to report the sale. Any department that becomes aware of a sale or disposition of a donated item should immediately notify the University Tax Office or Controller.

Form 8282 requires the donor name, address, tax ID number, plus a description of the property and any amount received by the University upon sale of the item(s).  Form 8282 must be filed with the IRS within 125 days of the date of disposition.  The Tax Office is responsible for preparation of the Form 8282 and its transmittal to the IRS and the donor.