The latest IRS regulations were promulgated on July 30, 2018. These included detailed definitions of a qualified appraisal and a qualified appraiser.
The appraisal must support the value of a stock or asset donation to a charity. Donated property value above $5,000 is subject to the appraisal, and must be accompanied by a signed Charitable Contribution Form 8283.
A qualified appraiser must be able to demonstrate, via verifiable information, his experience and education which qualifies him to appraise the type of property under consideration. This formal declaration is part of a statement in the report. The appraiser must also demonstrate that he has two or more years of experience valuing the type of property.
A qualified appraisal requires more diligent investigation by the appraiser. The property contributed must be sufficiently detailed so as to be understood by the reader not generally familiar with this property. The report must have an effective date of value no later than the effective date of contribution, and not earlier than 60 days before that same contribution date.
The report must contain the terms of any agreement by or on behalf of the donor and recipient. This requires diligent research as to the contribution terms, and communication with both the donor and recipient.
The methodology applied in the valuation process must be fully explained, with clear support for why certain approaches to value are deemed more appropriate. Also, clarity must be provided if an approach is not considered.