Donating a piano through Mundi Project can provide added tax benefits to donors if they claim the donation as a tax deduction. However, it can be a lengthy process. Please see below for a brief summary of the steps (for the full process, please see IRS Publication 561 "Determining the Value of Donated Property")
Per IRS regulations, Mundi Project cannot determine the fair market value (FMV) of the piano for donors, which is the amount individuals are able to deduct on their taxes. Our appraisals determine the condition and in-kind value of the piano only for our internal records. We provide a donation receipt once the piano has been moved out of the donor’s house, however, no monetary value is included on the receipt.
If the donor is interested in deducting the FMV of their piano, it is highly recommended that donors have an appraisal conducted by a qualified piano technician (according to IRS regulations, this cannot be the same piano technician that appraises the instrument for Mundi Project). This appraisal must be completed prior to the piano being moved or accepted into the Piano Bank program. Once the piano is in Mundi Project's possession or has been placed, donors will not be able to access the instrument.
If the piano is valued over $500, the IRS requires a formal, written appraisal and a completed Form 8283. The form needs to be filled out by the donor and signed by the appraiser and Mundi Project before it is filed with the donor's tax return.
As a reminder, deducting the piano's FMV requires that the donor is itemizing deductions and not taking the standard deduction. If you have any questions regarding the donation and/or valuation process, please consult a certified tax advisor or accountant once you have completed the application.