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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