Case #1: Tom is an avid collector of sports memorabilia and he has a collection worth $125,000. His cost basis in his collection is $115,000. Tom is a supporter of the American Cancer Society as his wife was afflicted with the disease and passed away 3 years ago. Tom is looking to gift to the American Cancer Society his sports memorabilia collection, and he has asked you the best way to do so for him to earn the largest deduction for tax purposes.

What are the issues he should consider in giving the collection (or value of his collection) to the American Cancer Society? What recommendations do you give Tom regarding getting the value of his collection to the American Cancer Society that will benefit both Tom and the charity?