Both individuals who commented regarding IRS Appraisal and Donation
Rules have good points that should be considered very carefully and
cautiously.  One should not be afraid to donate but one should also
do their due diligence and should consider selecting an appraiser
who is tested and certified through an appraisal organization that
_is_ qualified to prepare the document.  Selecting the appropriate
individual is key because, yes, there are rules and guidelines listed
in the IRS Publication 561 that the appraiser must follow, and it is
the appraiser who will fill out the 8283 Form that accompanies the
appraisal.

Being an appraiser who is tested and has earned his Accredited
Senior Appraiser (ASA) designation with The American Society of
Appraisers and created through testing as well of submission to bring
about the Personal Property Specific Discipline which is listed with
the organization of the American Society of Appraisers, which is
listed as Personal Property Classified Specialties Automatic Musical
Instruments, requires an Appraiser to be in compliance with the
guidelines set forth through their Code of Ethics and Appraisal
Practice as well as being tested on a 2 year bases with The Appraisal
Foundation and also comply with what is known as the Uniform Standards
of Professional Appraisal Practice (USPAP), has been my work for over
45+ years.

Please know, there are no Certified Personal Property Appraisers.
The only Certified Appraiser will be Real Property and that is done
through their State Boards.  If they have some form of designation with
their organization they will have a certificate stating this plus the
type of designation they assign.  The American Society of Appraisers
has three designations: Accredited Member, Accredited Senior Appraiser,
and Fellow Accredited Senior Appraiser, the last being a special
recognition for service to the society bestowed by it's fellow
appraisers.

As the appraiser it's my _responsibility_ to make certain when an
individual who is donating be certain they have first done their work.
Locate the museum or foundation that is going to accept the collection,
whatever the size might be, that both parties, the Museum/Foundation
is in agreement with the donation as well as the individual donating
and a Letter of Agreement be prepared by the Museum/Foundation listing
the item/s they are receiving, listing the day and date received, the
designated person in charge who signs and dates the letter and the
name/s address and item/s being donated also sign and date this letter.

A copy of that letter accompanies the appraisers report.  That in
and of itself lets the IRS know of the agreement between the recipient
and the donor.  As stated, $5,000 is the starting point where an
appraisal should be included so if one believes their collectible is
worth a minimum of $5,000 then it is advisable to consider contacting
an appraiser who is qualified and discuss it with them.  If the
individual donating knows for a fact the item isn't worth $5,000 then
they can just go ahead and include it with their regular filing as long
as it doesn't indicate it's worth $5,000.

Keep in mind this is what an appraiser is required to do and what
follows is only the tip of the iceberg because more is involved and
I am trying to keep this as short as possible because it is a lot to
understand.

Included in the appraisal document should be what is known as the
Comparable Market.  This supports the Estimated Value, the accepted
value by IRS is Fair Market Value, that is being donated.  It supports
and demonstrates to the IRS, that one isn't just picking values out of
the air or from their favorite crystal ball or what one thinks they
are.

The appraisal document when properly prepared by an appraiser will have
required information again showing each item listed.  These include to
name an item (Seeburg G Orchestrion), measurements, current condition,
identifying numbers (serial if one is available) all aspects, restored,
as-is, etc., because value is based on those factors, plus as detailed
a description as possible identifying that in fact this is one and the
same instrument, and of course photographs of the item.

Digital [images] are not allowed by the IRS, which means they must
be film processed by your local company who still performs this duty.
IRS considers digital images alterable, that's why it's not accepted.

Please also know an appraiser who especially is a designated member
with organizations that tests and designates them cannot discuss the
appraisal with anyone.  This is client appraiser confidentiality.
ASA has in place an ethics committee and if a client is not satisfied
with a job performed by a specific appraiser an ethics violation can be
submitted.  This is the way it should be.

The appraiser is committed to providing the best possible and
something extremely important to know, because the appraiser is
required to follow the rules and guidelines of the Society as well as
the Appraisal Foundation, a statement must be included in the document
that indicates if the appraiser misrepresents a value, they, the
appraiser can and will be held liable.  This is why in the earlier
comments I indicated, one should carefully do their due diligence
because you as the donor cannot say "I didn't know this"; you will be
held as responsible as the person who prepared the document for you.
That's the way the IRS works.

So, in conclusion, because there is so much more that could be shared,
my email address of course will be listed.  I have been around a long
time and I am known amongst many collectors and have prepared many
Donation and Estate Tax appraisals.  If you have more questions I would
love to answer them.  There is nothing to be afraid of when donating --
just be better informed.

Hope this has been helpful.

Noël Burndahl
Accredited Senior Appraiser, Automatic Musical Instruments
nburndahl@iglide.net.geentroep [delete ".geentroep" to reply]