Back To School: Donating Backpacks, Clothes & School Supplies Posted: 06 Sep 2013 02:40 PM PDT It’s Back To School Week on the blog! When I was in elementary school, I had to borrow a pair of socks for a school performance. The socks that were loaned to me had holes in them but at least they were the right color so I wore them. The principal noticed the holes and I was humiliated. I thought about this a few weeks ago as my own kids clamored for back to school items. They will, thankfully, never know what it is like to be subjected to ill-fitting hand me downs or have to make excuses for constantly patched clothes. And while they didn’t get everything they wanted this year – of course – they weren’t in tears because they knew their friends would have brand new TrapperKeeper notebooks while they were regulated to ugly, used binders. It may seem shallow but back to school matters to kids. Having the opportunity to have the same kinds of clothes and supplies as the other kids matters. Fitting in matters. A few weeks ago, I asked my friends to consider buying an extra pack of crayons or a notebook for a back to school supplies drive or splurging on a new jacket or tee shirt for a clothing collection. I was pretty overwhelmed by the responses. Friends shared all kinds of existing opportunities for donating school supplies. Most communities offer something for this purpose around this time of year. While my friends seemed to know where to donate, they didn’t seem to know quite how to document their donations for tax purposes. So here are a few quick tips: ◾Always get a receipt. Always. For donations of goods or cash (or cash equivalent), you need to get a receipt from the charitable organization which has the name of the charity; the date of the gift; the location of the charity; and a detailed description of the property donated. ◾If the organization doesn’t offer you a receipt, ask for one. If they’re taking your money or your stuff, they should be prepared to offer you a receipt. If they can’t be bothered – and you want that tax deduction – take your stuff somewhere else. ◾You may only deduct donations to qualified charitable organizations. If you’re not sure whether an organization qualifies, ask to see their letter from the IRS; many organizations will actually post their letters on their web site. If that isn’t possible, you can search directly online using the IRS Select Check tool; keep in mind that churches, synagogues, temples and mosques are considered de facto charitable organizations and are eligible to receive deductible donations even if they’re not on the list (some exceptions apply so be sure and ask if you’re not sure). ◾Donations to individuals, no matter how needy or deserving, are never deductible. ◾Keep excellent records. Scan or copy receipts and make sure that they’re accessible, readable and accurate. ◾You can only claim a tax deduction for a charitable donation if you itemize. You’ll report the donations on Schedule A of your federal income tax return. ◾For donations of non-cash items, your deduction is generally equal to the fair market value of the item: what the item would sell for in its current condition or the purchase price if the item is new. Be sure and note on your records the description and condition of the item. If you make non-cash deductions of used clothing and household items, they are only deductible if in good used condition or better. ◾For most charitable gifts valued at over $250, you will need a statement from the charitable organization showing a description (but not value) of any property donated and a statement as to whether the organization did or did not give you any goods or services in return for your contribution. One piece of paper can suffice for both requirements. To figure whether a gift is valued at $250 or more, do not combine separate donations. Treat each payment or gift as a separate gift. ◾If the amount of your non cash deduction is more than $500, you must complete and attach federal form 8283, Noncash Charitable Contributions (downloads as a pdf) to your federal income tax return. ◾If your total deduction is over $5,000, you may have to get appraisals; exceptions apply for certain kinds of property such as clothing and household items (the threshold may drop to $500) as well as cars, boats and qualified easements. Keep these tips in mind when you’re out shopping for fun new back to school items. Think about how excited your kids are to have new backpacks, pencils and notebooks. You could put a smile on the face of another child, too.
Posted on: Sat, 07 Sep 2013 14:43:16 +0000
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