Quilts for charity
 

Hi everyone,

I wondered how many of you make quilts for charity, and also use them for a tax deduction. I would be curious how you decide what to make the value of the donation. I love using my scraps and donating, but it also helps when I can use that for my taxes.

Thanks

I'm not 100% sure this is correct, but it is my understanding you can only deduct the cost of your supplies (ie fabric and thread), not the cost of your time.

That is correct according to my tax guy.

Yes you can only use the actual cost of fabric , and supplies for tax deduction purposes. As for selection of design..of the quilt. I try to pick a pattern and colors that have a broad appeal if its a raffle quilt. If it going directly to a person or charity that has a specific focus, I try to stay with that theme, for example kids prints or bright colors and patterns for Children's charities.

That would be too much hassle for me. I just give my quilts to friends family and people I don't even know.

I agree that you can't put a value on your time for charitable giving. However, I'm not sure that the answer of "cost of materials" is entirely correct. The tax code says that you must base the deduction on the fair market value of the gift, which could be more or less than what you spent on supplies. It's confusing and difficult to establish a fair market value for a quilt. Trying to substantiate that value in an audit would be horrendous.

i make alot of 'charity quilts' and it is true- you can only deduct what materials you purchase----and you need receipts!
i keep good records and include a picture of the quilt- sometimes with a picture of the fabrics before they are cut...i keep a file with my (expenses) receipts and a notebook with donation quilt information- what fabric i used, when it was purchased, the price- the quilt details (size, pattern) where it was donated and when.

I wonder if you can also deduct the postage for sending donation quilts?

When I turn in the cost of the silent auction quilts donated to the diabetes association here in reno, I also include the postage amount and the quilt amount on the sheet. So far, the donors were sent a donation letter with the whole total, tink's mom. I don't know about any other organization. My other quilt donations are taken directly to the buildings I donate to. Like the animal shelter, children's cabinet and seinor centers.

Publication 526 gives all the information on donations. Must be a qualified organization. Must be generally the lesser of fair market value or basis which is the $$ amount paid to purchase the materials to make the product and any purchases services like quilting that went into producing the product. Your own time or any appreciation is not counted.

So many forget that the organization must be qualified and it is not fair market value unless it is less than cost. Like clothes donated to Goodwill, it is the lesser value rather than what you paid for them.

Stocks and cars have unique implications.

Wise to read the Publication for specifics.

And you can get Pub 526 and dozens of others directly from the IRS for free.

I've never claimed any charity from me on taxes. And won't ever. #1, we don't do long form.

I donate quilts through my guild, so I don't claim any deductions.

I deduct the cost of the material and thread. It is usually warm here, so we don't use batting. My CPA also allows for one sewing machine tune up a year. I do not deduct for sewing machine needles. I do take photos of blankies and dresses made for donation in case I ever need it for the "guh-ment." (Forest Gump)

According to the IRS person I contacted on this point, (and the Turbo Tax forms), one can use "comparable value". For example, if quilt of mine of similar complexity and size sold for X$, I may use that as the value. USED quilts like used clothing,would be a different thing entirely.

Save the receipts for all supplies and be sure the receipts are itemized if you plan to use a quilt donation for a deduction. You can't use the wear of machine or power cost to make the quilt unless you file as a business. And the place you donate it to has to be profit making and declare it I think. This is the way it use to be.

I donate to local Nursing home--little quilts and wheelchair / walker bags...never ever filed a claim. It's called "donation". I believe we should all give back if we've been blessed by.."there, but for the grace of God, go I".

i make tons of them and have never used them as a deductions, I don't have enough decutionts to claim any

I haven't tracked my expenses for deduction. I make the charity quilts for my pleasure because I love to make them and have run out of people to give them to.

But that's me.

You should consult a tax professional to be sure that you are deducting only what's appropriate and not missing something that you may deduct.

I think that documentation, as mentioned about saving the receipts, is important. It is also good to have a "thank you" or other note from the non-profit organization, which will be the verification that a donation was actually received from you.

This brings to mind a question---------say a top notch artist donates a piece of art worth a million dollars on the open market. Is he/she allowed to deduct the going price of a million dollars or just the $50 or so for a canvas and paints?

My bet, in this case, is that he/she could deduct far more than the cost of materials.

We all know that he can deduct the million dollars! My MIL is a tax consultant. She is very bright and goes to seminars throughout the year. She is one of the few that can represent her clients in court in front of the IRS. I am going to ask her this question.

I have never donated YET! Your Eligible Too! I have a few quilts rolled up with no place to go and after reading this thread, I would like to donate them! Not just for tax purposes, but maybe to our dialysis center or a nursing home. I didn't make these to save me on taxes. I'd rather someone enjoy them, but it's an interesting thread and I will find out from my MIL what the rules are on this and get back to you all.

There are special rules for donations of that type. The first rule is it has to be appraised. Unless you are a famous quilter whose quilts are worth loads of money you don't need to worry about something like that.

You get to deduct the amount of the materials. BUT (big but) You should only use itemized deductions if they're more than the standard deduction and the standard has gotten so high lots and lots of people don't have enough itemized deductions to make it worthwhile.

If you could get a much higher credit for an appraised quilt, why on earth would you "worry" about it? If it were me, I'd get the appraisal in a heart beat.

I've been making charity quilts for years and it would never have occurred to me to claim them on my tax. Not that I pay tax anymore. I love being retired.

Yes, charity quilts, knitten charity winter hats, double receiving blankets for babies, etc. etc. I don't claim any deduction for any of it. It's my gift to the needy.

I actually never thought about the tax end of donating quilts. I just like to quilt and can not use them all and so I donate to various raffles and silent auctions. The information was appreciated, thank you.

Yes, DD who is an accountant, says to save all receipts from postage and you CAN deduct it.

The cost of sending a charity top out to be quilted by someone else, such as a longarm quilter is also deductible; keep the receipts.

Ditto. I make quilts for my local Children's Service and for Quilts for Kids and will not be claiming them on my tax return.

aside from local deliveries, I have mailed lots and when I get my taxes done, they have always allowed for postage cost. Now, whether that is right or wrong, I don't know but if they audit me, I will say "He told me I could!!"

I've always been paranoid that these kinds of deductions would make me more likely to be audited. The only charitable donations I claim are checks I've written. I just feel more comfortable that I could quantitatively prove these if I ever needed to. (And I hope I don't ever need to!)

It would be great if you could. I just spent $68.97 to return 3 quilts that I LA quilted to American Hero Quilts in Washington state.

I make quilts for our Local Children's Hospital and Project Lineus, but never worry about the tax deduction as we never have enough deductions to file long form anymore. They have taken away so many of the things the common taxpayer could deduct that there is nothing left for most people but to take the short form deduction.

Our little quilt guild that makes quilts for people who lose their homes to fires uses the scraps to make quilts for the Childrens Hospital as well, as well as using the many donations we have received from various wonderful people on this list. Those donations have helped us greatly on the fire quilts (and we just now are getting rid of five quilts to various families) and appreciate the generosity of everyone who has helped us out.

We are always open for anything you want to get rid of, orphan blocks, scraps, xtra material, batting or whatever as it is all put to good use. We don't have any funds as our group is a small group of elderly ladies on fixed incomes that struggle to do what we do so all the donations have been most welcome believe me. Thank you to the donor again and I know this has varied from the tax deduction question we started on. To those of you fortunate to have enough deductions go for it. I always keep track of my donations just in case, but it never works out it seems. Happy quilting to all.

I have made charity quilts for years, but I've never taken a tax deduction for them.

don't you mean non-profit?

I make a charity quilt every year but not for tax purposes....just because I want to give back. I use up my scraps or fabrics from the communal fabric box our quilt group has. It's a donation box of fabrics from members and friends who need to get rid of some.