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§ 21.2 APPRAISAL REQUIREMENTSNotwithstanding these requirements, an individual is not a qualifiedappraiser if the donor had knowledge of facts that would cause a reasonableperson to expect the appraiser to falsely overstate the value of the donated property.103 Also, the donor, donee, and certain other related persons cannot be thequalified appraiser for the property involved in the gift transaction. 104More than one appraiser may appraise the donated property, as long as eachappraiser complies with these requirements, including signing the qualifiedappraisal and appraisal summary. 105 If more than one appraiser appraises theproperty, the donor does not have to use each appraiser’s appraisal for purposesof substantiating the charitable deduction. 106Generally, no part of the fee arrangement for a qualified appraisal can bebased on a percentage of the appraised value of the property. 107 If a fee arrangementis based, in whole or in part, on the amount of the appraised value of theproperty (if any) that is allowed as a charitable deduction, after IRS examinationor otherwise, it is treated as a fee based on a percentage of the appraised value ofthe property. 108 (This rule does not apply in certain circumstance to appraisal feespaid to a generally recognized association that regulates appraisers. 109 )In any situation involving a gift of property, the charitable organization thatis the recipient of the gift must value the property for its own recordkeeping andreporting purposes. The charitable donee, however, is not required (and, in someinstances, may not be able) 110 to share that valuation with the donor.Many of these requirements apply to the donor. Therefore, technically, compliancewith them is the responsibility of the donor and not of the charitabledonee. As a matter of donor relations (if only because the charitable deductionusually depends on adherence to the rules), however, the charitable organizationwill want to be certain that its donors are made aware of the rules, andprobably will assist them in assembling the necessary records and in otherwisecomplying with the requirements. 111(e) Substantial Compliance DoctrineIn the first court case involving these rules, the U.S. Tax Court held that a charitablecontribution deduction was available even though the donors failed to attachto their income tax return a qualified appraisal of the donated property. 112 Thisopinion, however, contains a substantial misstatement of the law, because donors103 Reg. § 1.170A-13(c)(5)(ii).104 Reg. § 1.170A-13(c)(5)(iv). In formulating these rules, the IRS rejected the thought of including in the criteriafor qualified appraisers certain professional standards or the establishment of a registry of qualified appraisers.105 Reg. § 1.170A-13(c)(5)(iii).106 Id.107 Reg. § 1.170A-13(c)(6)(i).108 Id.109 Reg. § 1.170A-13(c)(6)(ii).110 See text accompanied by note 104.111 The IRS denied a charitable contribution deduction based on the fair market value of the property contributed,on the ground that the property did not constitute qualified appreciated stock (see § 4.5(b)), yet allowed thedonor a charitable deduction based on the cost basis in the property, even though the donor did not complywith the appraisal and substantiation requirements; a court accepted this “concession.” Todd v. Commissioner,118 T.C. 334, n. 2 (2002).112 Bond v. Commissioner, 100 T.C. 32 (1993). 599