Charities and Tax Deductions 101

I have been donating to charities for year. One because have have obligated myself to do so and two because I learned a few years ago of the tax deductions involved.

If you don’t already know, donations are tax deductible. I give to charity because I have been given a lot (literally)…a lot of clothes that is.

Someone is always giving me and my family clothing. Some of the things we keep and some we give away. After deciding what we want to keep, we then divide the bag into three piles one for trash, one for Goodwill and one for consignment. The trash pile is usually very small. For instance school spirit shirts, undergarments, or stained items.

Next we make a list of all of the Goodwill items, take a picture of the folded pile of garments and bag them up. I then compare my list to a copy of the Goodwill “Donation Value Guide” . The guide tells me the value of each item. We use this information to give us a total donation dollar value for tax purposes.

The last pile is for the consignment shop. This is where Proverbs 31:24 comes in which says that she makes her clothing and delivers girdles to the merchants. I am not yet able to make the clothing but, I am delivering it to the merchants.

I got involved with consignment because I am not very fond of hosting yard sales. I don’t like hosting yard sales simply because the buyer expects you to sell your items for less than what they are worth, so instead I take gently used clothing to 2nd hand stores. It’s great because 89% of my children clothes are hand me downs and today’s hand me downs are not yesterday’s hand me downs, in the sense that they are not faded and full of holes.

So when my children are done wearing items, or if we have items that just can’t fit any of us, I clean starch and hang each item. I then drop them off to a consignment and they call me when my check is ready.

If you’ve never thought about reaping that tax benefits of donating look into it. Also if you have a consignment shop in your area and time on your hands you could make consigning clothing a profitable hobby.