Tax Deduction (Donations)

[Princess Tink]

I hope this is the right place to post this.....as I've searched the boards, and this seems to be the best place to post this.

Also, NO FLAMES PLEASE. It was hard enough for me to get enough courage up to post this. Can we donate things to an individual and get a tax deduction? Let me explain.

My mom has a neighbor that recently had a fire, burning everything they own. This is a lady that has taken in 2 of her grandchildren to raise on her own, as these children lost their parents to drugs (mom is no longer alive, dad is in prison)....or something like that. I don't know the whole story, as it's hard for her to talk about. She doesn't work (remember she's older), she owned her home....she did not have insurance. It is a very sad situation. Luckily enough, they were not in the house at the time it happened, she was taking the children to school. We sent food and necessity type items when this happened (what we could do at the time), this was a couple months ago that this took place. My mom explained to the firefighters at the time what situation her neighbor would be left in and they contacted the Red Cross, RC helped her find a place to live, helped out with a first months rent and deposit to rent a house....but, it appears that was the extent of it. She was very thankful for that. And she was also grateful that she found a house on the same block to rent, as it comforts her to know she still has friends close that care about them.

Now to the reason I ask the question. I seen her yesterday (on Mother's Day) as my son was playing with her grandchildren and she asked him if I could come down when I got a chance. I went to her house, as she wanted to wish me Happy Mother's Day and give me a hug. I asked her how she was doing, and she said okay but was hesitant about how she responded....I could tell she was still hurting. I asked my mom how she was really doing, my mom said okay but they still had very little as they had little money. I got home and started thinking about all the stuff I had storing in my basement for a garage sale or for 'just in case' we need them (old dishes, microwave, microwave cart, silverware, recliner, glider) and all the things we have that we could probably afford to give up without noticing them even gone (bath towels, sheets, blankets). I'm sure the list can go on and on. When I mentioned this to my DH, he didn't seem very happy. He thinks I spend way too much time trying to take care of others. He said we can use the extra money, which I'm sure he's right but on the other hand, look what they don't have! I got to thinking, if he thought we were benefiting in another way maybe he would go for it............last year when I donated a bunch of my DS's baby furniture and what have you he thought nothing of it when I told him we could use it as a TAX DEDUCTION. Does anyone know if we would be able to do the same if we were to donate a bunch of stuff to an individual in need?

Again, no flames please...............just looking for advice on how to handle this and keep my home life happy as well. I know I can not save the world but, I like to try whenever possible. And I definitely see a need.

 

[tlbwriter]

You must donate to an "official" charity to get a tax deduction. Not just to needy individuals. Perhaps a church or some other recognized charitable organization would be willing to act as a go-between, but then again, I don't know if that violates the IRS rules.

 

[tar heel]

You cannot get a tax deduction for giving something to an individual. This is why fund-raisers for individuals often have a charity or church involved. For example, if this family's church set up a fund for them and you gave $100, it would likely be tax deductible even though the people would end up getting it. Unless the Red Cross would accept the items and then give them to the family, I can't think of any way to make this work.

 

[CEDmom]

I'm with the other poster. See if you could get a local church or fire/rescue squad to sponsor a drive for this family. It could be done quietly so not to embarrass this family but you'd then be in the clear to take a tax deduction. If you donate over $250 worth of goods/$ you'll have to itemize things and get a receipt.

 

[Princess Tink]

thanks everyone for the input. I think I will just sit down with DH and try to help him understand..........what if he were in there shoes? Maybe this will open his eyes.

 

[patrenoe]

I would like to commend you for caring about this family. I hope you can still talk your dh into donating to this family even though he would't be able to get a tax deduction.

 

[momxx5]

Please try to find a charity/Red Cross to help them.


It is great Karma - giving to others will come back to you 1,000 time over

 

[Princess Tink]

Thanks for the support, I think I have helped him understand the situation.....and our need to help. Well see this week-end when I start loading stuff up.

Thanks!

 

[crisi]

Churches really excel at this. If they don't have a church, approach yours, but you are best off approaching their church.

I've seen churches set up big "garage sales". First the "needy family (ies)" comes in and takes what they need. Then the congregation buys stuff, proceeds going to the needy families. The rest of the stuff is sent off to Goodwill/Salvation Army/ etc.

 

[fsufandis]

You cannot get a tax deduction for giving something to an individual. This is why fund-raisers for individuals often have a charity or church involved. For example, if this family's church set up a fund for them and you gave $100, it would likely be tax deductible even though the people would end up getting it. Unless the Red Cross would accept the items and then give them to the family, I can't think of any way to make this work.

Per IRS rules, you are not allowed to "instruct where your donation" is going when giving to a charity.

You can't say "I'll give you $500 as long as you give it to (fill in the name)" That is a big No-No. I was president of my church board for several years and this would come up from time to time.

It was usually, I've got a washing machine and the widow Jones needs one, can I give it to the church, take a tax deduction, and then you pass it along to the widow Jones? Technically, No we could not do that....In reality....chances are the widow Jones was the first person we contacted to see if anyone was in need of a washing machine.

 

[gigi1313]

definitely contact a church... they will be happy to give you a "donation" letter for donating the items to a needy family... i know ours is and we get approached for this stuff quite often (i run a food pantry thru our church, so i am the "person" LOL) esp around the holidays... we have individuals and businesses giving away Christmas trees and decorations and all kinds of stuff, and we provide them w/the "thank you for your donation valued at $xxx letter" so it's a win/win situation!

 

[CajunDixie]

I don't know how it is in other areas but here our township controls our food pantry. Our pantry not only has food but takes donations of toys, clothes, furniture.... We have had our trustee give out donation receipts for furniture after a local family lost their house to a fire. In that case people donated the items to the pantry then invited the family in during off hours to let them pick and choose the items they needed. This way they got first dibs on the items of their choice and the items they didn't need were left at the pantry for others in need.

 

[PaulaSue]

Good For You!!!! It is so nice to see neighbors helping neighbors!