Schedule M - Non-Cash Contributions

2008 Schedule M (Form 990) Instructions – Draft
April 7, 2008

2008 Schedule M (Form 990) Instructions
Non-Cash Contributions
Section references are to the Internal Revenue Code unless otherwise noted.

General Instructions
Purpose of Schedule
Schedule M (Form 990) is used by an organization that files Form 990 to report the
types of non-cash contributions received during the year by the organization and provide
reporting of certain information regarding such contributions. The Schedule requires
reporting of the quantity and reported financial statement amount of non-cash
contributions received by type of property. Do not report non-cash contributions
received by the organization in a prior year, or donations of services.
Who Must File
Any organization that answered “Yes” to Form 990, Part IV, Checklist of Required
Schedules, lines 29 or 30, must complete Schedule M and attach Schedule M to Form
990. This means an organization that reported more than $25,000 of aggregate noncash contributions on Form 990, Part VIII, Statement of Revenue, line 1g, or that during
the year received contributions of art, historical treasures, or other similar assets, or
qualified conservation contributions, regardless of whether it reported any revenues for
such contributions in Part VIII.
If an organization is not required to file Form 990, it is not required to file Schedule M.

Specific Instructions
Part I Types of Property
Column (a). Check the box in column (a) if the organization received any contributions
of the property type identified.
Column (b). In column (b) for each type of property received during the year enter the
number of contributions or the number of items contributed, determined in accordance
with the organization’s recordkeeping practices. Explain in Part II of this Schedule
whether the organization is reporting the number of contributions or the number of items
received. As described below, for each security, such as publicly traded stock, treat
each separate gift (rather than each share received) as an item for this purpose.
Organizations that receive contributions of books and publications, clothing and
household goods are not required to complete column (b) for those items.
Columns (c) and (d). In column (c), enter the revenues reported on Form 990, Part
VIII, line 1g, for the appropriate property type. If none were reported, enter “0.”
In column (d) describe the method the organization used to determine the amount
reported in Part VIII, line 1g. (e.g., cost or selling price of the donated property, sale of

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comparable properties, replacement cost, opinions of experts, etc.). See Publication
561, Determining the Value of Donated Property, for more information.
Example 1:
A used car in poor condition is donated to a local high school for use by students
studying car repair. A used car guide shows the dealer retail value for this type of
car in poor condition is $1,600. However, the guide shows the price for a private
party sale of the car is only $750. The fair market value of the car is considered
to be $750, which is the amount the organization reported in Form 990, Part VIII,
line 1g. In column (c), the organization should report $750. In column (d) the
organization should enter "sale of comparable properties and/or opinion of
expert" as the method used to determine fair market value.
Example 2:
An organization primarily receives bulk donations of clothing, household goods
and other similar items, intended for resale. Under its permitted financial
reporting practices, it does not recognize or record revenue at the time of receipt
of the contribution, but instead records such items in inventory and reports
contribution revenues at the time of sale based on prior inventory turnover
experience. In column (c) the organization may report the amount that represents
the total estimated amount of annual sales revenue for each type of property
received under its permitted financial reporting method, and in column (d) report
“resale value or annual sales revenue” as the method of determining revenue.
Museums and other organizations that do not report contributions of art, historical
treasures, and other similar items as revenues, as permitted under generally accepted
accounting principles should enter “0” in column (c) and should leave column (d) blank.
The organization may explain in Part II that a zero amount was reported in Form 990,
Part VIII, line 1g, because the museum did not capitalize its collections, as allowed
under SFAS 116.
Organizations that receive qualified conservation contributions may report column (c)
revenue consistent with a method permitted to be used for financial reporting purposes.
Lines 1-3. Art
Line 1. Works of Art include paintings, sculptures, prints, drawings, ceramics, antiques,
decorative arts, textiles, carpets, silver, photography, film, video, installation and
multimedia arts, rare books and manuscripts, historical memorabilia and other similar
objects. Art does not include collectibles such as autographs, sports memorabilia, dolls,
stamps, coins, phonographic records, gems, jewelry, sports memorabilia, dolls, etc.,
which are reported on line 18.
Line 2. An historical treasure is a building, structure, area, or property with recognized
cultural, aesthetic, or historical value that is significant in the history, architecture,
archeology, or culture of a country, state, or city.
Line 3. A contribution of a fractional interest in art is a contribution, not in trust, of an
undivided portion of a donor’s entire interest in a work of art. A contribution of the
donor’s entire interest must consist of a part of each and every substantial interest or
right the donor owns in such work of art and must extend over the entire term of the

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donor’s interest in the property. A gift generally is treated as a gift of an undivided
portion of a donor’s entire interest in property if the donee is given the right, as a tenant
in common with the donor, to possession, dominion, and control of the property for a
portion of each year appropriate to its interest in such property. For each work of art or
item, report in column (b) the fractional interest for each year an interest is received with
respect to the underlying work of art or item. See section 170(o) for special rules for
fractional gifts.
Line 4. Enter information about contributions of all books and publications, other than
rare books and manuscripts reported on line 1 and collectibles that are reported on line
18.
Line 5. Enter information about clothing items and household goods which were in good
used condition or better. Household goods include furniture, furnishings, electronics,
appliances, linens, and other similar items. It does not include (1) food, (2) paintings,
antiques, and other objects of art, (3) jewelry and gems (other than costume jewelry
reportable on this line), and other collectibles. Clothing items and household goods
which were not in good used condition or better are to be reported as a separate type in
“other” beginning with line 25.
Lines 6 and 7. On line 6 include only contributions of motor vehicles manufactured
primarily for use on public streets, roads, and highways. Do not include in lines 6 or 7
contributions of the donor’s stock in trade or property held by the donor primarily for sale
to consumers in the ordinary course of a trade or business. The organization is required
to file Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, for certain of
such contributions reported on these lines. See Form 990 Part V, line 7h.
Line 8. Intellectual property is any patent, copyright (other than a copyright described in
section 1221(a)(3) or 1231(b)(1)(C)), trademark, trade name, trade secret, know-how,
software (other than software described in section 197(e)(3)(A)(i)), or similar property.
Certain contributions of intellectual property may require the organization to file a Form
8899, Notification of Income from Donated Intellectual Property, with the donor and the
IRS with respect to such contribution. See Form 990 Part V, line 7g.
Line 9. Publicly traded securities means securities for which (as of the date of the
contribution) market quotations are readily available on an established securities market.
For each security, treat each separate gift (rather than each share received) as a
contribution for this purpose.
Line 10. Closely held stock means shares of stock issued by a corporation that is not
publicly traded. For each security, treat each separate gift (rather than each share
received) as a contribution for this purpose.
Line 11. On this line enter information about contributions of interests in a partnership,
limited liability company, or trust, which is not publicly traded. For each security, treat
each separate gift (rather than each share received) as an item for this purpose.
Line 12. On this line enter information about contributions of securities that are not
publicly traded securities, closely held stock, or partnership, limited liability company, or
trust interests. Security means any bond, debenture, note, or certificate or other

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evidence of indebtedness, issued by a corporation or a government or political
subdivision, share of stock, voting trust certificate, or any certificate of interest or
participation in, certificate of deposit or receipt for, temporary or interim certificate for, or
warrant or right to subscribe to or purchase, any of the foregoing. For each security,
treat each separate gift (rather than each share received) as a contribution for this
purpose.
Lines 13-14. A qualified conservation contribution is a contribution of a qualified real
property interest exclusively for conservation purposes. A “qualified real property
interest” means any of the following interests in real property:
1. The entire interest of the donor,
2. A remainder interest,
3. A restriction (e.g., an easement), granted in perpetuity, on the use which may
be made of the real property.
A “conservation purpose” means:
1. The preservation of land areas for outdoor recreation by, of the education of, the
general public,
2. The protection of a relatively natural habitat of fish, wildlife, plants, or similar
ecosystems,
3. The preservation of open space (including farmland and forest land) where such
preservation is for the scenic enjoyment of the general public or is in accordance
with governmental conservation policy, or
4. The preservation of an historically important land area or a certified historic
structure.
See section 170(h) for additional information, including special rules with respect to the
conservation purpose requirement for buildings in registered historic districts.
Line 13. On this line enter information about contributions of a qualified real property
interest that is a restriction with respect to the exterior of a certified historic structure. A
certified historic structure is any building or structure listed in the National Register as
well as any building certified as being of historic significance to a registered historic
district. See section 170(h)(4)(B) for special rules that apply to contributions made after
August 17, 2006.
Line 14. On this line enter information about qualified conservation contributions other
than those entered on line 13. This includes conservation easements to preserve land
areas for outdoor recreation by or for the education of the general public, to protect a
relatively natural habitat or ecosystem, to preserve open space, or to preserve an
historically important land area.
Line 15. On this line enter information about contributions of residential real estate.
Include information about contributions (not in trust) of a remainder interest in a personal
residence which was not the donor’s entire interest in the property. The term “personal
residence” includes any property used by the donor as a personal residence but is not
limited to the donor’s principal residence. The term “personal residence” also includes
stock owned by the donor as a tenant-stockholder in a cooperative housing corporation if

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the dwelling the donor is entitled to occupy as a tenant-stockholder is used by the donor
as a personal residence.
Line 16. On this line enter information about contributions of commercial real estate,
such as a commercial office building. Include information about contributions (not in
trust) of a remainder interest in a farm which was not the donor’s entire interest in the
property. The term farm refers to land used for the production of crops, fruits, or other
agricultural products or for the maintenance of livestock. A farm includes the
improvements located on the farm property.
Line 17. On this line enter information about real estate interests not reported on lines
15 or 16.
Line 18. Collectibles include autographs, sports memorabilia, dolls, stamps, coins,
books, gems, jewelry (other than costume jewelry reportable on line 5), sports
memorabilia, and dolls, etc., but not art as defined above or historical artifacts as defined
below.
Line 19. On this line enter information about food items, including food inventory
contributed by corporations and other businesses.
Line 20. On this line enter information about drugs, medical supplies, and similar items
contributed by corporations and other businesses that manufactured or distributed such
items.
Line 21. Taxidermy property means any work of art that is the reproduction or
preservation of an animal, in whole or in part; is prepared, stuffed, or mounted to
recreate one or more characteristics of the animal, and contains a part of the body of the
dead animal.
Line 22. On this line enter information about historical artifacts such as furniture,
fixtures, textiles and household items of an historic nature. Do not include works of art or
historical treasures reported on lines 1 and 2 and archeological artifacts reported on line
24.
Line 23. On this line enter information about objects or materials received that relate to,
or exhibit, the methods or principles of science.
Line 24. On this line enter information about archeological and ethnographical artifacts,
other than works of art or historical treasures reported on lines 1 and 2 and historical
artifacts reported on line 22. An archaeological artifact is any object that is over 250
years old and is normally discovered as a result of scientific excavation, clandestine or
accidental digging for exploration on land or under water. Ethnological artifacts are
objects which are the product of a tribal or non-industrial society, and important to the
cultural heritage of a people because of its distinctive characteristics, comparative rarity
or its contribution to the knowledge of the origins, development or history of that people.
Lines 25-28. Use lines 25-28 to separately report other types of property that are not
described above or reportable on previous lines. This includes items that did not satisfy
specific charitable deduction requirements applicable to the contribution of such type of

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property, but which were contributed to the organization, such as clothing and household
goods that were not in good used or better condition, and conservation easements that
the organization knows do not constitute qualified conservation contributions. Self
created items, such as personal papers and manuscripts, are to be listed separately.
Non-cash contributions do not include donated services which are reportable in
Schedule D, Part XI, Line 5, and may also be reported in the narrative section of Part III,
line 4 of the Form 990.
Line 29. Enter the number of Forms 8283 received by the organization during the year
for contributions for which the organization completed Part IV, Donee Acknowledgement,
of such form. If the organization does not keep complete records of such forms, do not
provide an estimate and leave line 29 blank.
Line 30a-b. Answer “Yes” if the organization received during the year a non-cash
contribution reportable on lines 1 through 28 for which the organization is required, by
the terms of the gift or otherwise, to hold the property for at least three years from the
date of the contribution and which property is not required to be used for exempt
purposes for the entire holding period. If “Yes,” describe the arrangement in Part II.
Line 31. Answer “Yes” if the organization has a gift acceptance policy that requires the
review of any non-standard contributions. A non-standard contribution includes a
contribution of an item that is not reasonably expected to be used to satisfy or further the
organization’s exempt purpose and for which (a) there is no ready market to which the
organization may go to liquidate the contribution and convert it to cash and (b) the value
of the item is highly speculative or difficult to ascertain. For example, the contribution of
a taxpayer’s successor member interest of the type described in Notice 2007-72, I.R.B.
2007-36 (September 4, 2007) is a non-standard contribution for this purpose.
Line 32a-b. Answer “Yes” if the organization hires or uses third parties or related
organizations to solicit, process, or sell non-cash contributions. If “Yes,” describe these
arrangements in Part II of this Schedule.
Line 33. Describe in Part II of this Schedule why the organization did not report revenue
in column (c) for a type of property for which column (a) is checked.
Part II Supplemental Information
Use Part II to provide narrative information required in Part I, lines 30b, 32b, and 33.
Also use Part II to provide other narrative explanations and descriptions. Identify the
specific line number that the response supports.

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