Andrew,
We've had similar situations with high-value intangible donations.  According to our auditor, all we needed to do was establish a paper trail showing the actual value and that all or part is to be considered a donation. 

He can write you a rental agreement that reflects this (it's a good idea to have it in writing anyway).  The contract would need to specify:
    The market value of the space ($1200/month)
    The amount he is writing off as a donation ($600/month)
    The amount you actually owe each month ($600/month)

You should also supply your landlord/donor with a copy of your 501 (c) 3 certification or a letter of fiscal sponsorship your sponsor's 501 (c) 3.  This will let him prove that you are, indeed, eligible to receive tax-deductible donations.

If he wants the agreement iron-clad, he can include contracts for utilities & wi-fi and a notice from a Realtor(tm) stating that the property really is worth $1200.  If he's really concerned, he may wish to speak to a CPA or financial consultant.  There is probably one in your community who will donate services.  They can get a tax deduction, too.

Jimmie
Neighborhood Bike Works

Providing opportunities to youth through bicycling.
PS - NBW has a listserv!  Subscribe at www.purple.com/list.html.


BovineOaks@aol.com wrote:
he could write you a $600 check each month as a donation then charge you 1200 rent so there is a real donation and a real paper trail that the IRS can not challenge



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