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Thread: I have a question about donating quilts or the labor put into them

  1. #26
    Super Member Daylesewblessed's Avatar
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    It seems that there are several issues here:

    Understanding and following the IRS rules on charitable deductions.

    Feeling confident that the charity understands and follows the IRS rules.

    Feeling confident that the charity and those volunteers and staff who handle the donations are honest and responsible in their care and distribution of donations.

    Anaylsis of our own motivations in making and giving quilts and our expectations of the recipients.

    Sometimes issues can get blurred, and we have to stop and look closely at what is the central problem.

    Dayle

  2. #27
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    You should get a receipt for your donation. You can make your own receipt and just have a representative of the charity sign it for you to make it easy. Also you can ask for a receipt since many charities may forget to offer it to you if not asked. This can help quite a bit when doing your taxes since quilts are very expensive to make. If they don't offer you need to ask. A friend of mine and I were having this discussion this weekend and she had made her own receipt and brought it along when she delivered prayer shawls to a charity and they had told her she was showing to low of an amount for her shawls. So I would say make sure you get the receipt. You can still go back to the charities that you have donated to and request a receipt since they have neglected to give it to you. Good Luck and good for you for donating to such needy charities.

  3. #28
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    If everyone was a volunteer, some may know tax rules better than others. It may not have been a slight to you personally. It may even have been a learning curve for the volunteer. Someone else may have recently taken charge and insisted everyone be given a tax receipt.

    We always just take the standard deduction. Itemizing and then keeping track of receipts and then have a senior moment (which occurs more often these days) and forgetting where we put them. Also, we have accumulated so much in the years that we have lived here, that I'm thinking of throwing out a lot of old receipts/paperwork. I wonder if it's okay to throw stuff out that is 10 plus years? Just how far back does the IRS go when they do an audit?

  4. #29
    Super Member Fabaddict's Avatar
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    you can claim the supplies used = fabric, batting, thread - on your taxes but you cannot claim the labor.
    Fabaddict

  5. #30
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    Quote Originally Posted by Silver Needle View Post
    Try joining a local quilt guild. We make quilts that are donated right in our area. This way we can be certain about how they are used. I am not aware that anyone gets a tax deduction for our donations.
    We do the same thing.....no tax deduction here..just or the love of it

  6. #31
    Super Member AZ Jane's Avatar
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    Someone may have answered this before but several things could have gone wrong. Yes, you sometimes need to ask for a receipt. The person in charge may not have known either most non-profits are run by volunteers and they come with different skill sets. Should they have known, yes, is it possible they didn't, yes. Things change with tax laws all the time. So please, don't be hurt and take it personally, as they say life happens.
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  7. #32
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    I donated a large quilt for a raffle for a charity auction. I was not able to charge for my time/labor, but I was able to deduct the cost of the materials. My suggestion is to always get a receipt for anything you donate (because the IRS has a deduction available for non-monetary donations).

  8. #33
    Super Member ghostrider's Avatar
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    Quote Originally Posted by AlienQuilter View Post
    Also, we have accumulated so much in the years that we have lived here, that I'm thinking of throwing out a lot of old receipts/paperwork. I wonder if it's okay to throw stuff out that is 10 plus years? Just how far back does the IRS go when they do an audit?
    That's one of those 'it depends' questions.
    http://www.forbes.com/sites/kellyphi...after-tax-day/
    http://money.msn.com/how-to-budget/h...er-weston.aspx
    Also, the retention time for state tax records varies by state, so check that, too.
    The Earth without art is just "Eh".

  9. #34
    Super Member MaggieLou's Avatar
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    There is a computer program that helps assign a value to donated items. The website is www.itsdeductible.com. It assigns a FMV to clothing and other items based on what they sell for at thrift stores like Goodwill, etc. You would be surprised how much more you can deduct using this program rather than coming up with what you think is a reasonable price. The IRS accepts their figures for tax purposes. It doesn't list everything that might be donated but it is broken down by mens, womens, children, household, etc. Items not listed you can assign a price yourself.
    Last edited by MaggieLou; 03-06-2013 at 08:02 AM.
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  10. #35
    Super Member wildyard's Avatar
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    The reason your friend got the receipt is probably because she knew to ask for it. I'm sure noone had the intent to use you badly. Many of us don't bother to get receipts because our income bracket is too low to itemize those things so it's not an issue. We file the short form and take the standard deductions.
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  11. #36
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    What does the size of one's income have to do with claiming the deduction? Can't anyone claim deductions for donated $$.

    Quote Originally Posted by qwkslver View Post
    For now you can take your donations to Goodwill or whatever charity and ask them for a receipt. Or make one up listing what you donated and ask them to sign it. It has to be signed by whoever is receiving it. Then you can add up whatever you have in it and take it off your taxes. You better believe my taxes are high enough I get to do this. I understand that next year this may not be the case. The IRS is thinking of taking that deduction away from us. You can check IRS.gov for recent info on this.

  12. #37
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    I did a couple quilts for Quilts for Kids, not interested in doing that again, paying to mail them off..., no offer of a tax deduction. I guess I assumed they would have gone to the local chapter of Quilts for Kids, Silly me.... Yes I got an email thank you and have also the request email for more donations....too many options for other places for my charity quilts.

  13. #38
    Senior Member quiltmau's Avatar
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    keep records and take pictures-for records and for yourself so you know what you did. You can take off the cost of fabric, thread, batting-not labour or hours spent. A simple way is figure how many yards of fabric used and times it by the cost of fabric. I quilt for charity, I bead for charity, and I am slowly getting rid of all my business clothes-I have only been retired for 10 years-slow, I know!!
    Some of the suits were quite expensive-custom made Italian wool for example- but Goodwill sells them for almost nothing. I try to remember that the person buying, needs them and not of the original cost to me. I donate to help others-the tax write off does help some but it is not the be all or end all for gifting.

  14. #39
    Super Member ghostrider's Avatar
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    Quote Originally Posted by Wintersewer View Post
    What does the size of one's income have to do with claiming the deduction? Can't anyone claim deductions for donated $$.
    If you itemize your deductions, you can claim charitable contributions. Income level does not matter at all.
    The Earth without art is just "Eh".

  15. #40
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    I just Googled, "Value of donated items" and got a list without signing up or having to remember passwords.

    [QUOTE=MaggieLou;5908746]There is a computer program that helps assign a value to donated items. The website is www.itsdeductible.com. It assigns a FMV to clothing and other items based on what they sell for at thrift stores like Goodwill, etc.

  16. #41
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    I forgot to consider postage....yes. local is best. It's a shame that mailing items doesn't get a reduction...but the PO is in such a mess that will never happen. Plus some folks would try to use it just to save $$$....nope....that will never happen.

    "I did a couple quilts for Quilts for Kids, not interested in doing that again, paying to mail them off..., no offer of a tax deduction. I g...."

  17. #42
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    any legitimate donation to a 503C ( charitable deduction) is tax deductible . That includes mileage to work at the charity site etc. If the organization doesn't give a tax receipt which all 503C's are required to do, you can take up to $500.00 a year off your taxes without receipts. You have to list what you donated and the value however less than $500.00 a year total deductions on a 1044 don't require a receipt.
    If you are making a quilt specifically, keep sales receipts for materials etc. for reporting purposes.

  18. #43
    Super Member ghostrider's Avatar
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    Quote Originally Posted by riutzelj View Post
    any legitimate donation to a 503C ( charitable deduction) is tax deductible . That includes mileage to work at the charity site etc. If the organization doesn't give a tax receipt which all 503C's are required to do, you can take up to $500.00 a year off your taxes without receipts. You have to list what you donated and the value however less than $500.00 a year total deductions on a 1044 don't require a receipt.
    If you are making a quilt specifically, keep sales receipts for materials etc. for reporting purposes.
    It's actually 501(c)3 organizations that I believe you are referring to, but there are others that qualify as well. Qualified organizations include those organized for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Certain organizations that foster national or international amateur sports competition also qualify.

    Also, regarding the cost of mailing donated quilts (or any other donation), the postage cost can also be claimed as part of the deduction. You do not have to 'eat' it.
    Last edited by ghostrider; 03-06-2013 at 01:05 PM.
    The Earth without art is just "Eh".

  19. #44
    Super Member Charming's Avatar
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    Thank you all sew very much for the replies on this post. I am not by any mean a high bracket income and getting the tax deduction is the least of my concerns. If i want to do something as a goodwill i definately don't want a return for it, but the fact knowing that some people use others and get away with it in collecting donated stuff and products for the needy and not using them the right way drives me crazy and makes me sick. After i sewed day and night for one non profit and having that bad experience at the end yes i have the right to know where my efforts are going and knowing they are going in fact to the needy not the greedy. I understand that we can't control the route for all the donations we make but i know if i "at least to my knowledge" took the right route and got a paper from the organization stating what i gave (even if i don't claim it) that they really put it to good use.
    Hope i am making sense here.
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  20. #45
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    Quote Originally Posted by clsurz View Post
    For me personally when I create a quilt to donate to an individual or group I do it out of love wanting to help them have a better life. Otherwise I would not do it.

    Years ago when I had lots of stuff to get rid off I donated to organizations like Salvation Army, Goodwill, etc and they would give me a blank piece of paper and I was to fill out the value of what I felt it was worth. I usually would put no more than 25% retail value. I use to take those deductions of my taxes each year but than it got to be to cumbersome because tax code only allows a certain amount overall each year and the difference can be claimed the next year. It really did not help me much so I quit doing it.

    Now I just donate and refuse a receipt! My attitude is that I'm donating out of love to help others and that is good enough for me.

    If I see a need regarding quilts and/or blankets I just make them and give them away. I call it "paying it forward" which blesses the folks I give it to and the good Lord keeps blessing me in many ways more than I ever expected in this life time.
    Absolutely!

    For kicks this year I itemized my donations to Goodwill, etc. Around $250.00 equalled about a $20.00 difference on my taxes. Not worth the trouble.

    I also donate a lot of time to verious organizations and do not expect to get a tax break.

    "Donating out of love" - what a nice way to put it.

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