What is an unrelated use of a donation?
Unrelated use means that the item will not be used for the purpose or function of the organization.
Example: If you contributed a painting to an educational charity and that charity placed it in its library for display and study by art students, the use isn't an unrelated use.
However, if the painting was sold and the money from the sale was used for educational purposes, the use is an unrelated use.
You may also need to limit your donation to your basis for other reasons. See Publication 526 for more information. You can limit your donation to your basis by answering Yes to the unrelated use question.
Example: If you contributed a painting to an educational charity and that charity placed it in its library for display and study by art students, the use isn't an unrelated use.
However, if the painting was sold and the money from the sale was used for educational purposes, the use is an unrelated use.
You may also need to limit your donation to your basis for other reasons. See Publication 526 for more information. You can limit your donation to your basis by answering Yes to the unrelated use question.
