In an attempt to “do it the right way” many companies, foundations, and individuals add specific conditions to their charitable donations. But adding restrictions to a gift adds unnecessary complexity, reduces the impact of the gift, and in some cases can turn out to eliminate your tax deduction. In other words, it's generally a bad idea.
Corporate philanthropy doesn’t have to be limited to just writing checks. Charities also appreciate donations of time, skills, inventory and capacity. Of these alternative options, the IRS has given “in-kind” donations of inventory a few complicating wrinkles, so we’ll try to smooth those out for you today.