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Thread: Value of In-kind donations

  1. #1
    Super Member jillaine's Avatar
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    Many of us here donate quilts to charities.

    A recent post (rant) about a last minute request to change the middle of an already-quilted quilt raised the point (again) that most non-quilters do not understand the value of a quilt.

    I wonder how many of us include a "receipt" with our donation that conveys its value? This would help recipients understand the value, and in an increasing number of cases, help organizations report their true fundraising results. I have served on nonprofit boards of directors, and one of the topics we've discussed in the past is the value of in-kind donations.

    A donated quilt has two (and you could make it three) types of contribution:

    1. direct cost of materials (fabric, thread, batting, etc.)
    2. hours of labor
    -- piecing
    -- quilting

    You'd need to check with your tax person, but it's possible that at least the direct cost of materials could be deductible if you itemize your income tax returns. Not so sure about the labor. That's tricky.

    But communicating this value helps educate the recipient, helps them understand and if needed record the value of the donation on their books.

    Thoughts?

    -- Jillaine

  2. #2
    Junior Member BOYD56's Avatar
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    Great suggestion!

  3. #3
    Super Member ghostrider's Avatar
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    Your time is not deductible as a charitable contribution unless the work you donate is what you do as your main source of income. The cost you paid for materials is, but, as always, it is best to have receipts to prove that cost.

  4. #4
    Super Member jillaine's Avatar
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    Quote Originally Posted by ghostrider
    Your time is not deductible as a charitable contribution unless the work you donate is what you do as your main source of income. The cost you paid for materials is, but, as always, it is best to have receipts to prove that cost.
    Absolutely!

    The main point I'm making here (or trying to) is that including a "receipt of value" with donated quilts helps recipients understand their value.

  5. #5
    Super Member ghostrider's Avatar
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    Quote Originally Posted by jillaine
    Absolutely!

    The main point I'm making here (or trying to) is that including a "receipt of value" with donated quilts helps recipients understand their value.
    While it may help them (the NPO) 'understand' the value, it will not help them 'assign' a value for their books. For the nitty-gritty on that see SFAS 157. (My day job pre-retirement was non-profit CFO)

  6. #6
    Super Member jillaine's Avatar
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    Quote Originally Posted by ghostrider
    While it may help them (the NPO) 'understand' the value, it will not help them 'assign' a value for their books. For the nitty-gritty on that see SFAS 157. (My day job pre-retirement was non-profit CFO)
    We *clearly* needed you on our NPO board of directors!

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