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
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.