Donate Intellectual Property to charity

Giving your creations of the mind to Giving Center such as inventions; copyrights and trademarks; literary or artistic patents; designs and symbols, domain names and images used in commerce is on the rise; there has been a steady uptick since early 2015 according to the World Intellectual Property Organization’s recent report. This increased demand correlates with a direct rise in interest for the gift donation tax benefits of Intellectual property donation. If you are considering the donation of intellectual or personality rights to the Giving Center, it is important that you first understand the rules and guidelines that govern this type of gift.

SO WHAT IS INTELLECTUAL PROPERTY? (IP) refers to fruits of mental labor and is any product of the human intellect that the law protects from unauthorized use by others.

The most common forms of intellectual property donations are copyrights, domain names, patents and trademarks..

When an idea is created which may result in future monetary gains, the first legal step to protect that idea is a patent. This “idea” could be something as simple as an insider process which is the foundation to your company’s success or as complex as a new invention for an exoskeleton, stasis machine or video tattoos. The most common forms of intellectual property protection are copyrights, patents and trademarks. The creation of this patent turns your intangible asset (the intellectual property you created or own) into a tangible, legally recognized asset. This type of asset can become a tax deductible charitable gift; which is a benefit to both you and The Giving Center.

What Are the Tax Benefits for You the Donor? There are two main ways you can earn a tax deduction from the Giving Center for your Intellectual Property asset. You have the right to receive the full face value of your intellectual property, as a tax deduction; at the time of donation. Option 2, you can continue to receive tax benefits based on any royalties or other monetary gains received by the I.P. asset. You can earn years of tax deductible gains with one I.P (intellectual property) donation to The Giving Center. As Patents rise, so will the future restrictions on this type of tax deductible gift. Lock in your benefits for this year before the IRS regulations tighten.

Intellectual property is likely to continue to be a growing market. This means that donations of this type are also, likely to increase. This trend can be a unique value to owners of intellectual property come tax time. If you would like to benefit from the tax advantages of intellectual property donation or would like to learn more about whether or not your specific donation is the right fit for the Giving Center, give our team a call. We are here 7 days a week.

Donate Intellectual Property through the provided form below Or Just give us a Call (888)-228-7320

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What is the gift of intellectual property for tax purposes?
The majority of charitable donations are valued and tax deductible at their face / market value. For example, if you donate a car to charity and the car is valued by the market (similar items currently for sale or recently sold; excluding Ebay and other auction sites) to be worth $5000 dollars, you are eligible for a tax deduction of $5000 dollars. With intellectual property, valuation for tax deduction purposes, is more complex; but it can offer extreme tax deduction benefits initially, and for years to come.

Further information regarding ownership rights of intellectual property allowed for donation to The Giving Center. Assets like Patents and trademarks are often owned by more than one person or business entity. Your individual ownership will determine the final value of your intellectual property donation. While you can donate intellectual property that you do not own exclusively, it is recommended that you receive a 3rd party valuation prior to giving. Make sure to speak with a tax professional about your ownership rights prior to donation. We at the Giving Center accept all allowable gifts of kind including: Intellectual Property and all other forms of capital property; Securities, such as stocks, bonds, and units of a mutual fund trust; land, buildings, and equipment you use in a business or a rental operation. Personal-use property (A type of property that an individual does not use for business purposes or hold as an investment. In other words, property that an individual owns for personal enjoyment), including listed personal property, a leasehold interest, or a residual interest. A gift in kind, can not be a gift of services.

*The IRS does not strictly require a 3rd party appraisal for any donation, but it is highly recommended for this type of ‘gift of kind’. Valuation and deduction without a 3rd party appraisal may result in further scrutiny of your overall tax return. It is highly that you always consult your trusted tax professional prior to giving to charity.

How The American Job Creation Act of 2004 affects your donation
The American Job Creation Act of 2004 adjusted several regulations regarding intellectual property donations. While you may still receive the face value of your donation, at the time of donation as a tax deduction, there is now a cap on the number of years you can continue to receive tax deductible benefits from said donation. For up to ten years you can continue to receive direct tax deduction value as long as Giving Center provides a notice yearly.

The Giving Center provides an 8283 IRS form each year with the above information; in direct cooperation with the Internal Revenue Service guidelines. In addition, we report through IRS form 8899 all income received from your donation; for the full 10 year required period, or the life of the asset. This form will always include:
The name, address and TIN of the donor,
a description of the qualified intellectual property contributed,
the date of the contribution,
the amount of net income of the donee for the taxable year which is properly allocated to the qualified intellectual property for any portion of the 10 year period from the date of the contribution, and any other information specified by the form and its instructions.

Determining Value of your Intellectual Property Gift
Valuation on capital property of this type can seem a bit tricky to determine. The IRS recommends that a 3rd party, certified in the relevant field shall perform an appraisal of your asset at the time of donation. This appraisal will determine your current, holdings value and thus, your eligible tax deduction value; at the time of donation. The Giving Center can help you find a qualified appraisor in your area. Contact our office today to learn further information about available Capital property valuation resources in your area.Call 888-228-7320

Who Determines the Future Net Income of your donation?
Future value is usually determined by the company/user licensing the intellectual property. While it is the donee (the Charity you give to) responsibility to report future income, it is recommended that the company or individual utilizing your intellectual value for gain be the one that determines value year over year.

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