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Old 02-22-2014, 02:17 PM
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Question Charitable Contribution fundraising question

I started crafting items to sell for fundraisers for a charity event last year, purchasing supplies to do so. Obviously, not all of the supplies have been used as of yet, but they were purchased for the sole purpose of raising money for the charity's event that my husband's company participates in each summer. How would I deduct these expenses? Would it be considered a cash contribution since the items get sold and the money is then contributed? We don't get any statements from the charity as individuals as all the money is pooled. Please help! Thank you so much for your assistance.



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Old 02-23-2014, 07:54 AM
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Originally Posted by elmerj222 View Post


#1;I started crafting items to sell for fundraisers for a charity event last year, purchasing supplies to do so. Obviously, not all of the supplies have been used as of yet, but they were purchased for the sole purpose of raising money for the charity's event that my husband's company participates in each summer. How would I deduct these expenses?


#2;Would it be considered a cash contribution since the items get sold and the money is then contributed?


#3;We don't get any statements from the charity as individuals as all the money is pooled. Please help! Thank you so much for your assistance.


#1;aslongas you donate the supplies, you may deduct fmv of the supplies donated to the charity.if it is capital gain pty, then, you may deduct fmv only if you held it for more than 1 year; if it ‘d produce ordinary income, you may only deduct original costs, not fmv. U can deduct unreimbursed outta pocket exp,i.e., cost of gas/oil directle related to the use of car in giving services to the charity.ou can’t take a ded for clothing/hh items donated after aug 17, 2006.

#2; no.please read below;note. As mentioned above.UNLESS you donate cash, you need to use the FMV to determine the value of your donations. Locate similar items selling in second hand shops or auctions to determine the price they are selling for, or get an estimate for the value of some common items given to charity; typically the group to which you make the donation will either re-sell the items and give the proceeds to programs for needy people, or they will donate the items directly to the needy.
you need a receipt/ reliable written records for each item donated

#3;for deduction,the IRS requires that you obtain a receipt if the value of the items you donate is $250 or more. Even if the value is less than $250, it still is wise to keep a receipt for your records. The receipt and your list of items stay with you; they do not get attached to your tax return.so, you need to get a signed receipt from the charity to which you donate. The receipt should include the name and address of the charity, the date of the donation, a general description of the items donated. Also, the receipt should contain a statement that you received nothing in exchange for your donation.

Note;you can’t deduct a cash contr. Regardless of amount, without a RECEIPT FROM CHARITY or you need canceled check/ bank credit union stmt/ bank record



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Old 02-23-2014, 11:10 AM
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Clarification of situation

I'm not sure I was clear on my presentation of my situation. I purchase supplies to make hairbows and sell them to raise money to donate to a specified charity. The event I was referring to that my husband's company participates in is a 300-mile bike tour in which each rider needs to raise at least $1,000. My husband is one of the riders on the company's team. So, I am not donating the goods directly to the charity, however, I am donating the cost of the goods that I make and sell to the charity. The group of employees hold fundraising sales and then apply the money raised towards the riders' goal before the ride. Does that make sense? I u derstood all the info you mentioned from the IRS pubs but the pubs don't really address something like this. My apologies for length and not being clear or if I'm misunderstanding. Thanks much.



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Old 02-23-2014, 02:04 PM
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Originally Posted by elmerj222 View Post


#1; I purchase supplies to make hairbows and sell them to raise money to donate to a specified charity. The event I was referring to that my husband's company participates in is a 300-mile bike tour in which each rider needs to raise at least $1,000. My husband is one of the riders on the company's team. So, I am not donating the goods directly to the charity,



#2;however, I am donating the cost of the goods that I make and sell to the charity. The group of employees hold fundraising sales and then apply the money raised towards the riders' goal before the ride. Does that make sense?



#3;I u derstood all the info you mentioned from the IRS pubs but the pubs don't really address something like this. My apologies for length and not being clear or if I'm misunderstanding. Thanks much.

#1;correct as you mentioned, you, by using the supplies, make hair bows and sell’em to raise money to donate it to the charity. Then you can claim FMV of the hair bows sold. If you sell them and rasie money and donate the money to the charity, then it is cash donation , NOT non-cash donation.However, Cost of all of the supplies not used as of yet, but were purchased for the sole purpose of raising money for the charity's event that your husband's company participates in each summer is not deductible UNLESS they are used to be made and sold as hair bows( as you may use them for another purpose).aslongas/ IF you donate the remaining, I mean unused supplies, to the charity then you can claim either FMV or original cost of the supplies. I guess you can contact the IRS for more info in detail.

#2;yes it does; I really appreciate your efforts.

#3;sorry for my misinterpretation on yur situation too.



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Old 02-23-2014, 07:08 PM
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Thank you so much for your response. I really appreciate your patience and assistance with my question! Bless you!



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Old 02-24-2014, 06:20 AM
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Originally Posted by elmerj222 View Post
Thank you so much for your response. I really appreciate your patience and assistance with my question! Bless you!
Thank you very much; exactly same to you and your family. Good luck~



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