Benefits Deductible
April 8th, 2008
Question: Are inventory donations to a 501 (c)3 organization tax deductible? Or only monetary donations?
I’m located in Wisconsin and have a small side business in antiques and collectibles. I belong to a non-profit club and donated 15-20 pieces of vintage/depression glass to a charity auction benefiting the club. Would these items be tax deductible? My cost or the sale price at auction? I have records to back up the donation. Thanks in advance for your help.
Answer: Most “non-profit clubs” are not 501(c)3 organizations, so that’s the first thing to find out.
Non-cash donations to a 501(c)3 organization are deductible. The determination of the deduction, and the requirements for recordkeeping, are tricky, and if the value is significant, you might want to talk to a CPA about it (NOT Block or Liberty or Hewitt). There are different rules depending on whether the contribution is under $250, over $500, or in between.
Read publication 561 (download at irs.gov) for info on valuation.
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