Question regarding donation of large queen size quilt
#13
Super Member
Join Date: Mar 2010
Location: Anchorage, AK
Posts: 1,393
sounds like there are two branches to this communication. I understood your question to be how much to value the quilt at for raffle purposes...I was told a few years ago that charging $15/square foot is a starting point for charging for custom quilts. That should help you in that area...you can raise the price if the fabric was extra expensive, the quilting was really detailed, etc.
I agree with the other poster who suggested that a raffle would raise more money than an auction...I donate quilts annually to raise funds for a scholarship fund and lots of people will pay ten or twenty dollars to have a chance to win the quilt, but few will offer to pay the full price for the quilt...a 48 by 48 lap/wall quilt would be worth $240 by above formula but most folks wouldn't go that high unless it's a very unique quilt, in which case, it probably would have been priced higher...
I agree with the other poster who suggested that a raffle would raise more money than an auction...I donate quilts annually to raise funds for a scholarship fund and lots of people will pay ten or twenty dollars to have a chance to win the quilt, but few will offer to pay the full price for the quilt...a 48 by 48 lap/wall quilt would be worth $240 by above formula but most folks wouldn't go that high unless it's a very unique quilt, in which case, it probably would have been priced higher...
#14
Originally Posted by Tennessee Suzi
Be careful, raffles are illegal in some states so do a little research first.
#15
Silent auctions do not bring as much per item as a live auction. At least that has been my experience working my kid's school's auction project every year for the past four years. Is there a live auction at this event?
#16
Thanks so much for all your wonderful comments and suggestions. I too am new at this and didn't know exactly where to start. I will follow up on the Tennessee laws regarding raffles or selling chances on an item. I think $10 is a reasonable amount to charge on a chance to win a quilt ... or whatever we can call it under the TN law. Do you think $10 is ok?
#17
Power Poster
Join Date: Dec 2008
Location: Western Wisconsin
Posts: 12,930
Originally Posted by EdieClay
Thanks so much for all your wonderful comments and suggestions. I too am new at this and didn't know exactly where to start. I will follow up on the Tennessee laws regarding raffles or selling chances on an item. I think $10 is a reasonable amount to charge on a chance to win a quilt ... or whatever we can call it under the TN law. Do you think $10 is ok?
#18
Super Member
Join Date: Mar 2010
Location: Anchorage, AK
Posts: 1,393
your decision should be based on the income of the folks who attend. Some groups can easily use the $10 per ticket, others the $1 and still others...tho not any I'm in...can do $100...so it's your call.
I agree that you should have a "Discount" price...spend more and get an extra ticket..
I agree that you should have a "Discount" price...spend more and get an extra ticket..
#19
Originally Posted by UglyCook
Originally Posted by ckcowl
according to the tax laws you are allowed to claim the cost of materials (pattern everything included) so i would say go ahead and start it at $100 but can you put a minimum on it? if so the $250 you have into it would be appropriate. the thing about auctions is if you start high no one bids, there is a better chance of getting a good price if it starts low enough to get bidding started. i had one once that i had $200 into... it was to be raffled...the group did n't (bother) very much with selling tickets...they made $45 on it...i was so ticked i have refused to ever make them another one...but i had one that sold for $1800 so you just never know...but the rule really is, once you donate it...it's not yours anymore, so what ever they do with it is their gain (or loss) you get to claim the $250 you put into it on your taxes (if you itemize)
http://www.irs.gov/pub/irs-pdf/p561.pdf
http://www.irs.gov/publications/p526...link1000229745
And don't forget, it must have been given to a registered charitable organization
When you are the artist, you can only claim the cost basis as the gift. Thus, only the value of the materials. Your time is not a deductable gift. When you give an item made by someone else you can deduct the FMV. IRS form 8283.
#20
When you are the artist, you can only claim the cost basis as the gift. Thus, only the value of the materials. Your time is not a deductable gift. When you give an item made by someone else you can deduct the FMV. IRS form 8283.[/quote]
FMV does not deal with time. FMV means "An exchange price that a willing and well-informed buyer and seller would reach through negotiation under current market conditions."
If you are a music artist, you cannot deduct the time you donate for a benefit concert. When you donate a quilt, you cannot say, "I spent 60 hours on this so I can tack on another $240 for my time", but you CAN deduct what the quilt is worth if sold at "FMV". It doesn't matter who created the item, if FMV is $500, you can deduct that amount, but not add on anything for time.
FMV does not deal with time. FMV means "An exchange price that a willing and well-informed buyer and seller would reach through negotiation under current market conditions."
If you are a music artist, you cannot deduct the time you donate for a benefit concert. When you donate a quilt, you cannot say, "I spent 60 hours on this so I can tack on another $240 for my time", but you CAN deduct what the quilt is worth if sold at "FMV". It doesn't matter who created the item, if FMV is $500, you can deduct that amount, but not add on anything for time.
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