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Thread: Donating fabric for a tax write-off

  1. #1
    Senior Member
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    Has anyone donated fabric for a tax write-off? If so, to who and what value did you use?

    I was thinking about it for next year. I don't think I will use all the fabric I have in storage. I don't want to spend the time and energy to catalog, photograph, and post it for sale at a loss and I thought this might be a good use for the fabric.

  2. #2
    Moderator Up North's Avatar
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    Salivation army is a good place and you give a price and they write a receipt!

  3. #3
    Power Poster Prism99's Avatar
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    I think there is some formula that is used for donations -- that is, you can deduct only a certain percentage of the price new. I'm thinking 25%?

    Also, remember that it's not a credit against taxes owed; it just reduces your income by the amount donated. This can make the tax savings really small.

  4. #4
    Super Member Treasureit's Avatar
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    I believe the tax code says something like..you can use the price they would sell it for in a thrift store. I use turbo tax and they have a tax calculator or website that lets you put in each item and it tells you what they will allow. It is a lot more generous than I ever figured.

  5. #5
    Super Member trif's Avatar
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    I have deducted the cost of fabric used to make donation quilts, I think prism99 is right that it's only a small percentage that is actually calculated, we itemize and have someone who does our taxes with us, it's just to hard to keep up with all the new laws for what is or isn't Deductable.

    I think you would get a better write-off if you donated the fabric to Downey quilts for kids as opposed to goodwill, if you give to goodwill IRS only allows garage sale price for deduction, not purchase price.

  6. #6
    Super Member SuziC's Avatar
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    I was able to take a donation deduction for all the baby quilts i donate to the children's hospital. It was small but every little bit helps :!:

  7. #7
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    Regardless of where you donate the fabric, you can deduct what you could sell it for.

    When I donate fabric, I try to determine what I think I could sell the fabric for. When I make a quilt to donate, I use the actual cost of the fabric.

  8. #8
    Super Member jdiane318's Avatar
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    Several of the ladies from my Project Linus chapter take a tax deduction on their donated blankets, afghans and quilts. Two of the ladies keep all their receipts along with cd's with photos of each quilt in the event of an audit. It is the best way to protect yourselves. You can not deduct labor but you can supplies such as thread, yarn, fabric, batting.

  9. #9
    community benefactor Renee110's Avatar
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    My tax person always tells me to donate and get a receipt for $1000. I think under that amount doesn't come into play. Or something.

  10. #10
    Senior Member SewMomma66's Avatar
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    Check with the quilt guilds in your area. I know we are always looking for fabric for our various projects be it Quilts of Valor, the hospitals, cancer patients. A guild would be happy to receive such a generous offer.

    L

  11. #11
    Super Member jdiane318's Avatar
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    I am a chapter coordinator for Project Linus in my area and we receive lots of donations from individuals during the year.

    When we receive donations of fabric, yarn, batting, our receipt states the very thing that was donated to us per IRS rules. We cannot however put a monetary value on the donation. A lady gave us two irons, two older sewing machines, 18 boxes of fabric and scraps and 3 boxes of denim jeans. That is what was written on her tax receipt.

  12. #12
    Power Poster ckcowl's Avatar
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    you have to donate to ligitimate non=profits that offer 'tax-receipts' such as good will, womens resource center, salvation army, habitat for humanity ect...
    my 'tax man' told me you can claim actual (cost) of the fabrics ... in order to use your donations for tax purposes you have to be very good about saving receipts...the receipt you receive from the non-profit; the actual purchase receipts so you can show how much you did pay for the fabric in the first place. same for donating quilts...you can only claim cost of materials, not what you think the quilt is worth.
    my husband and i have between $2500 and $3500 in donation receipts every year so always get to use the deduction, but the IRS does look at these amounts and it can (red-flag) your return for an audit...if they think you are trying to (scam them) so make sure to save every receipt and be prepared to prove your claim.

  13. #13
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    My first thought was to donate to Project Linus. I would at the very least make a list with an acccount of the number of different fabrics and the length for each, along with any other items donated. Get a signature where you donate the fabric to confirm your listing and donation given. The price of cotton is going up so your donation would be most appreciated.

    Pam M

  14. #14
    okiepastor's Avatar
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    I am involved with multiple non-profits, and you can use the value (what you would get if sold) OR the cost, if you have receipts.But as stated in other posts, you need receipts. does not matter if the total is $100 or 10000.....
    A donation will save you around 35% of the amt. of the donation on your taxes

  15. #15
    Super Member earlylace's Avatar
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    I think there is a limit on the donations, its $500 thats for clothing.

  16. #16
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    Thanks for the information. I am really busy w/work right now but will be thinking about this for later this year.

  17. #17
    grugirl's Avatar
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    There is a software program offered through tax software like HR BLOCK TAX software that I use each year. It is called Deduction Pro. When you use their software, this piece is available free to calculate all of your yearly donations. I have used it for years. You choose What you are donating from a list of items, The condition they are in and how much of it and it caculates it for you. However you file your taxes, ask a person or check out the software on tax deductions under Charitable Donations section and you will get good credit for it.

  18. #18
    grugirl's Avatar
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    Here is an excellent article on EHOW to figure out the cost of what you are donating.

    Here is the link: http://www.ehow.com/how_2383951_calc...charities.html

  19. #19
    Power Poster ckcowl's Avatar
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    you have to choose a non-profit organization which will give you an itemized receipt. you have to put the monatary value on your donation. the amount that is allowed is the actual cost and you need receipts if you get audited so proper documentation is a must.

  20. #20
    grugirl's Avatar
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    Another option I keep thinking about is donating it to a church that actually makes quilts for abused women or to donate to police to give out to victims, also the RED Cross may take it if they have orgs similar to this. It has to be a charitable organization that is a 501C tax organization. That ensures you will get the proper credit.

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