Welcome to the Quilting Board!

Already a member? Login above
loginabove
OR
To post questions, help other quilters and reduce advertising (like the one on your left), join our quilting community. It's free!

Page 1 of 2 1 2 LastLast
Results 1 to 25 of 37

Thread: Quilts for charity

  1. #1
    Senior Member
    Join Date
    Oct 2009
    Location
    Utah
    Posts
    438

    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

  2. #2
    Super Member gramajo's Avatar
    Join Date
    Mar 2011
    Location
    Peotone IL
    Posts
    2,657
    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.

  3. #3
    Super Member dakotamaid's Avatar
    Join Date
    Feb 2009
    Location
    South central Nebraska, US
    Posts
    5,582
    That is correct according to my tax guy.
    Have a great day sewing and remember to "not sweat the small stuff"!!



  4. #4
    Super Member Lori S's Avatar
    Join Date
    Apr 2010
    Location
    Illinois
    Posts
    9,385
    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.

  5. #5
    Power Poster Jingle's Avatar
    Join Date
    Dec 2009
    Location
    Outside St. Louis
    Posts
    29,909
    That would be too much hassle for me. I just give my quilts to friends family and people I don't even know.
    Another Phyllis
    This life is the only one you get - enjoy it before you lose it.

  6. #6
    Power Poster dunster's Avatar
    Join Date
    Mar 2009
    Location
    Lake Elsinore, CA
    Posts
    12,717
    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.

  7. #7
    Power Poster ckcowl's Avatar
    Join Date
    Feb 2009
    Location
    Northern Michigan
    Posts
    11,333
    Blog Entries
    1
    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.
    hiding away in my stash where i'm warm, safe and happy

  8. #8
    Super Member Tink's Mom's Avatar
    Join Date
    Oct 2008
    Location
    chicago, IL
    Posts
    9,692
    I wonder if you can also deduct the postage for sending donation quilts?
    Tink's Mom (My name is really Susie)

  9. #9
    Power Poster RedGarnet222's Avatar
    Join Date
    Jan 2009
    Location
    Reno, Nv
    Posts
    14,873
    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.
    Last edited by RedGarnet222; 01-08-2013 at 09:37 AM.
    RedGarnet222

    "Take your needle, my child, and work at your pattern ... It will come out a rose by and by. Life is like that ...one stitch at a time, taken patiently."
    *Oliver Wendell Holms

  10. #10
    Senior Member
    Join Date
    Feb 2011
    Location
    central indiana
    Posts
    691
    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.

  11. #11
    Super Member Scissor Queen's Avatar
    Join Date
    Jul 2009
    Location
    Southwest Kansas
    Posts
    4,829
    Quote Originally Posted by sweetana3 View Post
    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.

  12. #12
    Super Member GrannieAnnie's Avatar
    Join Date
    Aug 2010
    Location
    S. W. Indiana
    Posts
    7,489
    Quote Originally Posted by hsquiltingmom View Post
    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've never claimed any charity from me on taxes. And won't ever. #1, we don't do long form.
    Bad Spellers of the World
    U N T I E

  13. #13
    Super Member Candace's Avatar
    Join Date
    Jan 2010
    Location
    Outer Space
    Posts
    9,838
    I donate quilts through my guild, so I don't claim any deductions.

  14. #14
    Super Member coopah's Avatar
    Join Date
    Dec 2011
    Location
    Horse Country, FL
    Posts
    6,421
    Blog Entries
    1
    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)
    "A woman is like a tea bag-you can't tell how strong she is until you put her in hot water." Eleanor Roosevelt

  15. #15
    QM
    QM is offline
    Power Poster QM's Avatar
    Join Date
    Dec 2010
    Location
    Northern California mountains
    Posts
    12,541
    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.

  16. #16
    Power Poster BellaBoo's Avatar
    Join Date
    Jan 2009
    Location
    Front row
    Posts
    14,661
    Blog Entries
    2
    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.
    Got fabric?

  17. #17
    Super Member mermaid's Avatar
    Join Date
    Oct 2010
    Location
    Tennessee, UC area
    Posts
    1,136
    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".

  18. #18
    Super Member
    Join Date
    Jan 2009
    Location
    Hattiesburg,MS 39402
    Posts
    1,469
    i make tons of them and have never used them as a deductions, I don't have enough decutionts to claim any

  19. #19
    Senior Member cmw0829's Avatar
    Join Date
    Jan 2011
    Location
    Phoenix, AZ area
    Posts
    954
    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.

  20. #20
    Super Member Daylesewblessed's Avatar
    Join Date
    Sep 2011
    Location
    West Texas
    Posts
    1,874
    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.

  21. #21
    Super Member GrannieAnnie's Avatar
    Join Date
    Aug 2010
    Location
    S. W. Indiana
    Posts
    7,489
    Quote Originally Posted by mermaid View Post
    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".
    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.
    Bad Spellers of the World
    U N T I E

  22. #22
    Super Member jcrow's Avatar
    Join Date
    Jan 2011
    Location
    Small town in Northeast Oregon close to Washington and Idaho
    Posts
    2,734
    Blog Entries
    5
    Quote Originally Posted by GrannieAnnie View Post
    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.
    "Be yourself...everyone else is taken."
    Strong people don't put others down...they build them up."
    "Remember that your instincts are more important than rules"

  23. #23
    Super Member Scissor Queen's Avatar
    Join Date
    Jul 2009
    Location
    Southwest Kansas
    Posts
    4,829
    Quote Originally Posted by GrannieAnnie View Post
    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.
    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.

  24. #24
    Super Member GrannieAnnie's Avatar
    Join Date
    Aug 2010
    Location
    S. W. Indiana
    Posts
    7,489
    Quote Originally Posted by Scissor Queen View Post
    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.
    Bad Spellers of the World
    U N T I E

  25. #25
    Super Member katesnanna's Avatar
    Join Date
    Aug 2010
    Location
    Brisbane, Australia
    Posts
    3,431
    Blog Entries
    15
    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.

Page 1 of 2 1 2 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

SEO by vBSEO ©2011, Crawlability, Inc.