Charitable Donations using coupons? - YDF - Your Daily Freebies Forum - Coupon Codes

TexGirl · 08-18-2005, 10:33 AM

A few weeks ago someone mentioned giving to charity & claiming full amount(real cost of product) when they give to charity. Instead of discounted cost after coupons.

I always gave to charity & never got a receipt since most items are free or pennys. I'm getting ready to give a large batch of toothpaste, deoderant, toothbrushes, etc to the VFW so they can send it to the troops. How should I go about this?

I just made my list & broke it down by product, brand & size, and variety. I would like to know what I'm suppose to claim. FOr example: I'm sending some of the Clearacil and Schick Quatro's. The Clearacil was $4.99 but on sale for 50% off, and the Schick Quatro's were $8.99 but were on sale for $1.99...then I got both products for free. Do I claim the original price,disconted price or no price at all since w/coupons they were free? I have a donation list that I will have the VFW sign, but do I still need to save my receipts since I did not buy all this at once? It was done over several months and I don't have the receipts for all these now.

I don't want to do anything shady, and I don't want this to come back on me with the IRS. But I do think (obviously) that the products I am giving away are worth $$ on my taxes.

I would appreciate anyone who does this to let me know what you do and how you do it so that I do it right. Thanks!:D

knott02 · 08-18-2005, 11:22 AM

I work at a non-profit in Iowa, and the best bet would be to ask what the laws are in your state. I know that when we get donations here, we ask the donor to state the "value" of the gift on their receipt. We don't assign a value, but if you go to like you local "Goodwill", they would have suggested values for items that they normally receive. I know like a shirt you can take off like $2.00 for a shirt is good shape. A couch is like $35-40 no matter if it is "quality" or "junk" If you have a $300 comforter, it is still a value like a $3 blanket when it is donated...you have to look at the value of the actual use. A $300 blanket keeps you just as warm as a $3 blanket.

For items that you have gotten free or very cheap, you should be able to take off the usage value of an item. Like a 8.99 razor...does it give the person using it the same value as a 4.99 razor or a 1.99 razor. Shampoo does it get you just as clean as a bottle of .99 suave or is it something differnt.

You should not have to keep receipts for items like these...unless your taxes have other funny things happening with them. Do keep an itemized list of the items so you can prove that you did give them away and have the person sign it.

I hope this helped!

Knott02

SugarMag420 · 08-18-2005, 02:51 PM

I found a website that has some info on this. There are also worksheets you can use to help you keep track.

Here are the links:

http://www.bankrate.com/brm/itax/Edi..._20000107a.asp

and

http://www.bankrate.com/brm/itax/tips/20010122a.asp

One of the things they say is this:
When you give goods instead of cash, it's up to you -- not the IRS, not the charity -- to assign a value to your donation. Of course, the IRS has rules on how you decide what a donated item is worth: Claim its fair-market value, or what a willing buyer would pay for that item in its current shape, not what it was worth when it was new.

HTH!

Mycyd · 08-18-2005, 03:35 PM

I work at a non-profit also. And as said previously it will be up to you to establish the worth of your items. We don't take many item donations but we have people donate skills (design work or raffle items once in while) and we only will thank and describe what was donated like the type of item or specifics about the work being done for us. We can't set any value in a letter or receipt unless it's cash. These are IRS rules.

When you itemize you can donate up to a certain amount without going into a lot of detail. If you get audited then that's when you need the receipts. But most places like Goodwill will only give a receipt describing the types of item e.i., household goods, etc. Unless you are donating thousands of dollars, I really wouldn't worry to much and just do the best on estimating the items you're donating.

TexGirl · 08-18-2005, 05:21 PM

This is harder than I thought. I don't have a clue what the "fair market value" of deoderant & toothpaste would be when it is new & never been used.

Does anyone use "it's deductible?" & if so, does it have a section for food/grocery items? If not, should I use "garage sale prices" for the items I'm donating?

Thanks for all your help...I just want to make sure I do this right!

Mycyd · 08-18-2005, 05:40 PM

I itemize every year and I give money and donate items. I keep all my receipts from the charities themselves (and obviously you only claim the exact cash amount donated (by payroll deduction, checks or cash) and I write down more details on the donated item receipts because again Hospice, Goodwill, etc. don't give any details on their receipts. They might say misc. household items, furniture, new hygiene items, etc. I just do an estimate and go from there. I have never claimed more than the amount allowed where you have to go into more detail because I've never donated an art object or car, etc.

Personally I would just do the best you can and not worry anymore about it. The only time you need be concerned is if you are chosen to be audited and if you were honest and did the best you could on claiming a fair deduction you'll be fine.

Adding:

You take charitable deductions on the form as:

items donated
dollars donated
mileage for driving while volunteering

TexGirl · 08-20-2005, 12:55 AM

Thanks for all your help.

Wow! That was great! I've always just given stuff away with no receipts. This makes giving even better!

By the way your local VFW will ship your donations to the troops for FREE! They said they are in need of flea collars of all things! They say the sand fleas are very bad so they wear them on their wrists and ankles. Be on the look out for sales on these along with ready to eat snacks and baby wipes. No bottled water is shipped since it weighs too much.

K.in.TX · 08-20-2005, 11:32 AM

Hi Texgirl, I usually I just donate clothes and household items, so the values are low cause they are used. I just make the list before I take the stuff and then staple it to the receipt they give me because it is usually blank, just has date and signature. When I donate new items like bath products or food, I do use store prices, but not the inflated CVS prices. I go by what the product would cost maybe at Walmart, which is a little more realistic. Toothbrushes I would do $1 to $1.50, deo maybe $2 etc. I go low on the price and make it a nice even amount that is easy to calculate. That way nobody can come back and tell me the values I stated are too high. As pp posted, the IRS does not know you used coupons and bought the item for under its value - obviously a new toothbrush would be worth more than let's say 5 cents eventhough that might be what you paid for it - make sense?

TexGirl · 08-20-2005, 06:42 PM

By the way, if your going to donate to the troops I just found out that the requested "flee collars" are posionus for people!

I don't know why the VFW would tell me to get those! I was thinking that Off Wipes would work well for them.

08-18-2005, 10:33 AM	#1
TexGirl Registered User Join Date: Oct 2003 Location: Texas Posts: 255	Charitable Donations using coupons? A few weeks ago someone mentioned giving to charity & claiming full amount(real cost of product) when they give to charity. Instead of discounted cost after coupons. I always gave to charity & never got a receipt since most items are free or pennys. I'm getting ready to give a large batch of toothpaste, deoderant, toothbrushes, etc to the VFW so they can send it to the troops. How should I go about this? I just made my list & broke it down by product, brand & size, and variety. I would like to know what I'm suppose to claim. FOr example: I'm sending some of the Clearacil and Schick Quatro's. The Clearacil was $4.99 but on sale for 50% off, and the Schick Quatro's were $8.99 but were on sale for $1.99...then I got both products for free. Do I claim the original price,disconted price or no price at all since w/coupons they were free? I have a donation list that I will have the VFW sign, but do I still need to save my receipts since I did not buy all this at once? It was done over several months and I don't have the receipts for all these now. I don't want to do anything shady, and I don't want this to come back on me with the IRS. But I do think (obviously) that the products I am giving away are worth $$ on my taxes. I would appreciate anyone who does this to let me know what you do and how you do it so that I do it right. Thanks!:D

08-18-2005, 03:35 PM	#4
Mycyd chat Join Date: Mar 2001 Location: California Posts: 3,483	I work at a non-profit also. And as said previously it will be up to you to establish the worth of your items. We don't take many item donations but we have people donate skills (design work or raffle items once in while) and we only will thank and describe what was donated like the type of item or specifics about the work being done for us. We can't set any value in a letter or receipt unless it's cash. These are IRS rules. When you itemize you can donate up to a certain amount without going into a lot of detail. If you get audited then that's when you need the receipts. But most places like Goodwill will only give a receipt describing the types of item e.i., household goods, etc. Unless you are donating thousands of dollars, I really wouldn't worry to much and just do the best on estimating the items you're donating. Last edited by Mycyd; 08-18-2005 at 03:37 PM.

08-18-2005, 05:40 PM	#6
Mycyd chat Join Date: Mar 2001 Location: California Posts: 3,483	I itemize every year and I give money and donate items. I keep all my receipts from the charities themselves (and obviously you only claim the exact cash amount donated (by payroll deduction, checks or cash) and I write down more details on the donated item receipts because again Hospice, Goodwill, etc. don't give any details on their receipts. They might say misc. household items, furniture, new hygiene items, etc. I just do an estimate and go from there. I have never claimed more than the amount allowed where you have to go into more detail because I've never donated an art object or car, etc. Personally I would just do the best you can and not worry anymore about it. The only time you need be concerned is if you are chosen to be audited and if you were honest and did the best you could on claiming a fair deduction you'll be fine. Adding: You take charitable deductions on the form as: items donated dollars donated mileage for driving while volunteering Last edited by Mycyd; 08-18-2005 at 05:43 PM.

08-18-2005, 11:22 AM	#2
knott02 Registered User Join Date: Dec 2004 Location: Hudson, Iowa Posts: 35	I work at a non-profit in Iowa, and the best bet would be to ask what the laws are in your state. I know that when we get donations here, we ask the donor to state the "value" of the gift on their receipt. We don't assign a value, but if you go to like you local "Goodwill", they would have suggested values for items that they normally receive. I know like a shirt you can take off like $2.00 for a shirt is good shape. A couch is like $35-40 no matter if it is "quality" or "junk" If you have a $300 comforter, it is still a value like a $3 blanket when it is donated...you have to look at the value of the actual use. A $300 blanket keeps you just as warm as a $3 blanket. For items that you have gotten free or very cheap, you should be able to take off the usage value of an item. Like a 8.99 razor...does it give the person using it the same value as a 4.99 razor or a 1.99 razor. Shampoo does it get you just as clean as a bottle of .99 suave or is it something differnt. You should not have to keep receipts for items like these...unless your taxes have other funny things happening with them. Do keep an itemized list of the items so you can prove that you did give them away and have the person sign it. I hope this helped! Knott02

08-18-2005, 02:51 PM	#3
SugarMag420 Super Moderator Join Date: Dec 2003 Location: Arguing with some people is like trying to blow out an electric light bulb. Posts: 4,385	I found a website that has some info on this. There are also worksheets you can use to help you keep track. Here are the links: http://www.bankrate.com/brm/itax/Edi..._20000107a.asp and http://www.bankrate.com/brm/itax/tips/20010122a.asp One of the things they say is this: When you give goods instead of cash, it's up to you -- not the IRS, not the charity -- to assign a value to your donation. Of course, the IRS has rules on how you decide what a donated item is worth: Claim its fair-market value, or what a willing buyer would pay for that item in its current shape, not what it was worth when it was new. HTH!

08-18-2005, 05:21 PM	#5
TexGirl Registered User Join Date: Oct 2003 Location: Texas Posts: 255	This is harder than I thought. I don't have a clue what the "fair market value" of deoderant & toothpaste would be when it is new & never been used. Does anyone use "it's deductible?" & if so, does it have a section for food/grocery items? If not, should I use "garage sale prices" for the items I'm donating? Thanks for all your help...I just want to make sure I do this right!

08-20-2005, 12:55 AM	#7
TexGirl Registered User Join Date: Oct 2003 Location: Texas Posts: 255	Thanks for all your help. Wow! That was great! I've always just given stuff away with no receipts. This makes giving even better! By the way your local VFW will ship your donations to the troops for FREE! They said they are in need of flea collars of all things! They say the sand fleas are very bad so they wear them on their wrists and ankles. Be on the look out for sales on these along with ready to eat snacks and baby wipes. No bottled water is shipped since it weighs too much.

08-20-2005, 11:32 AM	#8
K.in.TX Registered User Join Date: Nov 2003 Location: DFW Metro Posts: 82	Hi Texgirl, I usually I just donate clothes and household items, so the values are low cause they are used. I just make the list before I take the stuff and then staple it to the receipt they give me because it is usually blank, just has date and signature. When I donate new items like bath products or food, I do use store prices, but not the inflated CVS prices. I go by what the product would cost maybe at Walmart, which is a little more realistic. Toothbrushes I would do $1 to $1.50, deo maybe $2 etc. I go low on the price and make it a nice even amount that is easy to calculate. That way nobody can come back and tell me the values I stated are too high. As pp posted, the IRS does not know you used coupons and bought the item for under its value - obviously a new toothbrush would be worth more than let's say 5 cents eventhough that might be what you paid for it - make sense?

08-20-2005, 06:42 PM	#9
TexGirl Registered User Join Date: Oct 2003 Location: Texas Posts: 255	By the way, if your going to donate to the troops I just found out that the requested "flee collars" are posionus for people! I don't know why the VFW would tell me to get those! I was thinking that Off Wipes would work well for them.