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

  1. #1
    Super Member Charming's Avatar
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    I have a question about donating quilts or the labor put into them

    Ok so i love making charity quilts, but i had a very bad experience when i first started quilting where i was used in return for a thank you for about two years and when i got somebody to help that charity so i can attend to other family matters the new person got a receipt for the tax right from the first time....i was in shock and hurt to the core...
    I got to know quilts for kids and i requested a kit to make and quilt and i matched with a quilt of my own (that was last year but can't remember when) and i didnt get any tax receipt.
    Today i learned about the quilts beyond border?? and their website clearly states that they are tax deductible....so i am confused and need as much info on this as i can.

    I love helping but after my first experience I will never be used again. I would rather knock on a poor person's door and give them a quilt than mailing randomly and not knowing what is going to happen to the quilt and i have heard numerous stories about people bringing quilts to long armers as they are going to charity and end up in their homes. I am saying that is to generalized but i really want to avoid that.

    Pls help me stop my confusion ):

    Thanks
    Faten
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  2. #2
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    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.
    Cheryl Robinson
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  3. #3
    Super Member mom-6's Avatar
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    I've not heard about donations other than monetary gifts being tax deductible. Doesn't mean they may not be, just that I've never heard anything about it or considered that it might be possible.
    Of course I also have this hang up about tax deductions and giving that I won't go into further on this forum.

  4. #4
    Member Kris 2011's Avatar
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    I make quilts for Project Linus and the lady keeps track all year of what we donate. At the end of the year she gives us a sheet that we can use for a tax deduction with all of our donations listed. It is up to us to assign a value to our work and this is fine with me. You might want to see if there is a Project Linus chapter in your area. Those quilts are donated to the hospital for sick kids locally.

  5. #5
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    I'm confused...maybe I'm misunderstanding the question, but if you donate to Goodwill/Salvation Army etc., that donation is tax deductible, if you're itemizing. If you're donating quilts to a recognized charity, you should be able to take a deduction. You can't deduct the cost of labor, but your deduction should be based on "fair market value" - what someone would be willing to pay for it. I was at Salvation Army thrift store today and they were selling quilts for $24.99.

  6. #6
    Super Member Sandygirl's Avatar
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    They may not have thought about giving you a tax donation form . It is up to you to determine the value though. Not the charity. Track your costs and make up a sheet or find one on the internet. Itemize your supplies and list the charity you donated it to. Or ask them if they use a form. Live and learn. No need to be all hurt. Remember, volunteers may always be aware of these things.

    Sandy
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  7. #7
    Power Poster ckcowl's Avatar
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    for quilts for kids, or any of (those type) of charitable foundations you may make quilts for your own paper work is a must! you can only claim the amount you put into the donation---so, keeping all materials receipts is necessary- you are not allowed to (claim) any of your time- or the market value of the quilt- only the real cost of making it-and if you are audited you need all of your receipts to back up your claims....you can include the cost of shipping the quilt (provided you have postal receipts to prove the expense)...so, good records is necessary
    hiding away in my stash where i'm warm, safe and happy

  8. #8
    Super Member alwayslearning's Avatar
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    Are you perhaps getting upset about something that may not apply to you? Are you in that high a tax bracket that you could could use these deductions? If you are, you now know to ask.
    "Only those who know enough is enough can ever have enough." Lao Tzu

  9. #9
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    I searched google and got hits for several charities that say they are tax deductible. I'm sure they are, as all clothing, houseware, etc are when you donate to Goodwill. I did it all the time. What you need is to take pictures of the items (proof) and get a receipt. We use Turbo Tax so I'm not sure how you'd do it otherwise, but they have a section for donations and even an itemized list of the value of things. Say, a pair of jeans are $30, top is $20, etc. You can look into it. If it's a legitimate charity then they must give you a receipt if you want it.

  10. #10
    Senior Member qwkslver's Avatar
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    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.

  11. #11
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    Quote Originally Posted by ckcowl View Post
    for quilts for kids, or any of (those type) of charitable foundations you may make quilts for your own paper work is a must! you can only claim the amount you put into the donation---so, keeping all materials receipts is necessary- you are not allowed to (claim) any of your time- or the market value of the quilt- only the real cost of making it-and if you are audited you need all of your receipts to back up your claims....you can include the cost of shipping the quilt (provided you have postal receipts to prove the expense)...so, good records is necessary
    Yes, I didn't add this in my post. You MUST keep receipts of the cost of the fabric,thread, etc.

  12. #12
    Super Member ghostrider's Avatar
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    Some resources to check out.
    Tax deduction info for charity quilting
    http://www.quiltcentric.com/2013/01/...rity-quilting/
    Goodwill valuation guide (not for stuff you make, but good for used items you donate anywhere)
    http://www.goodwill.org/wp-content/u...tion_Guide.pdf
    and the IRS Charitable Contribution regs (Publication 526)
    http://www.irs.gov/publications/p526/ar02.html
    The Earth without art is just "Eh".

  13. #13
    Super Member Scissor Queen's Avatar
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    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.
    As a side note, the IRS does not make tax law. The IRS is not thinking of taking away deductions. Congress makes tax law.

    You can't deduct any thing for the time you spent making a quilt. You can deduct the actual cost of the materials you put into the quilt.

    Being able to take deductions has nothing to do with what tax bracket you're in. It's simply a matter of your itemized deductions adding up to more than the standard deduction.

    I did taxes for 8 years. During that time they tightened up the rules for taking charitable deductions.

  14. #14
    Super Member willferg's Avatar
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    I work with my local Project Linus chapter, and we offer receipts to people who make donations of fabric and yarn and other materials. Usually it's someone who's quit quilting or the relatives of a deceased quilter. Roughly half take a receipt, others do not. I don't think any of our blanket volunteers ever ask for a receipt.

    Me, personally, I can't even imagine keeping track of what fabric I've bought, what's been given to me, what I've picked up at yard sales, what I've used for charity and what I've used for myself. Like others said, you can't write off your labor, only the materials, and the labor to me is the biggest part. I consider it all a gift from the heart...
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  15. #15
    Power Poster gabeway's Avatar
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    We deduct just the costs involved with material, etc.
    Wayne & Gabriele, the married quilters.

  16. #16
    Power Poster Prism99's Avatar
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    I did a Quilts for Kids kit and sent it back along with a quilt of my own. They did not send a tax receipt. If I wanted to itemize a deduction like this on my taxes (we have not itemized deductions as long as I can remember; the standard deduction always seems to cover us), then I would have taken a photo of the quilt I sent and kept receipts for fabric, batting and thread that went into the quilt. You can deduct only the materials that are donated; no time or labor.

    Maybe it depends how seriously you are into making donation quilts. I never thought it worth the time to document what I donate. If I were going to make and donate a lot of quilts, I think I would try to keep materials for donation quilts separate from my own quilts and develop a filing system for receipts. Quilts for Kids did email me a thank you after they received the quilts; I would make a copy of that for my filing system too.

    Think about Goodwill. When I drop off items there, they give me a receipt but it does *not* document what I gave or what its value is. I am supposed to attach a list of what was in my donation. Also, there are guidelines for valuing donations. If I buy a pair of jeans for $30 and then donate them to Goodwill unworn, I do not think I can value the donation at $30; maybe half that if the tags are still on? A lot of stuff is valued at only 10% to maybe 25% of original price.

    (Edit: Donation quilts are able to be valued by means of original cost of materials. Hope I didn't confuse anyone with the Goodwill example.)
    Last edited by Prism99; 03-05-2013 at 08:44 AM.

  17. #17
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    Working with a guild is a good idea, or you can take it to any 501c organization and get them to give you a receipt. Normally all of the abuse shelters qualify - I know our group does a lot for them.

  18. #18
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    hi! i am collecting quilts (for sandy victims), any donations to some senior citizen ladies in my community center who lost just about everything in sandy. i, we, are not giving any tax donation receipts to anyone who donated. and there were quite a few wonderfully generous people. both with their time and money.

  19. #19
    Super Member Peckish's Avatar
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    Did you ask for a tax receipt? It's hard to tell from your post if you asked for one, or waited for one to fall into your lap.
    I've made a lot of quilts for charity, but never bothered to ask for receipts for tax purposes. I may be wrong, maybe Scissor Queen can clarify this for me, but it just seemed that the tax benefits weren't worth the effort. (Of the receipts, NOT the donations. They're totally worth it!)

  20. #20
    Power Poster BellaBoo's Avatar
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    It was non caring of the group not to ask if you wanted a receipt. It never crossed their minds to ask during all that time if you knew you could have one? It would make me wonder how are they managing the whole operation.
    Got fabric?

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    Tax deduction article reference...

    [QUOTE=ghostrider;5905457]Some resources to check out.
    Tax deduction info for charity quilting
    http://www.quiltcentric.com/2013/01/...rity-quilting/
    etc.

    Thanks for the link to my article. For those who are interested, I interviewed a tax expert from the H&R Block Tax Institute to find out about what documentation is needed to get a tax deduction for charity quilting, and what the IRS rules are about taking the deduction. This article is the result, posted on my blog. I hope it helps someone!

    Janelle

  22. #22
    Super Member ghostrider's Avatar
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    Quote Originally Posted by quiltcentric View Post
    Quote Originally Posted by ghostrider View Post
    Some resources to check out.
    Tax deduction info for charity quilting
    http://www.quiltcentric.com/2013/01/...rity-quilting/
    etc.
    Thanks for the link to my article. For those who are interested, I interviewed a tax expert from the H&R Block Tax Institute to find out about what documentation is needed to get a tax deduction for charity quilting, and what the IRS rules are about taking the deduction. This article is the result, posted on my blog. I hope it helps someone!

    Janelle
    My pleasure, Janelle. You summed everything up quite clearly and specifically from a quilter's point of view. Nicely done. Welcome to the Quilting Board.
    The Earth without art is just "Eh".

  23. #23
    Power Poster PaperPrincess's Avatar
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    This is what I was told by a tax preparer for an individual tax return. You can deduct what YOU paid out and that you have a receipt for. (thread, fabric, batting and if you had a bill from a long arm quilter) Don't use anything from your stash (unless you have the receipt). You cannot deduct anything for your time. It may be different if you do quilting as a business, but if you do not have a formal business, then you can't claim anything for your time. So if you get a kit from a charity, all you could deduct would be your thread and batting. If you had the receipt.
    "I do not understand how anyone can live without one small place of enchantment to turn to."
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    Tax deduction

    I ask the person receiving my charity quilts to sign a receipt for them on which I include the yardage, material types, and thread. Not a lot for just one quilt but it adds up over the year. This irritates me so much as there is no credit given for hours of labor but that's the way it is.

  25. #25
    Super Member clsurz's Avatar
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    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.
    clsurz

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