Discussion:NonCash Donations - Sold on EBay in behalf of 501(c)3 Org?
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Discussion Forum Index --> Tax Questions --> NonCash Donations - Sold on EBay in behalf of 501(c)3 Org?
| 5 December 2007 | |
| Client ships off various household and clothing items to agent of following Nonprofit Organization who in turns sells them on Ebay and sends Net proceeds to Organization.
See below:
Click on any item for description and 100% Donation Statement.
Dennis McDonald eBay ID ma-pa-potts http://search.ebay.com/_W0QQsassZma-pa-pottsQQhtZ-1
James Woods eBay ID 894james... http://search.ebay.com/_W0QQsassZ894james
ONESpirit SITE
What everyone should know about me I am passionately involved with WWW.nativeprogress.org, One Spirit, We all need to step UP!!! Things I sell I am selling all things that have been collected by me, 100% going to ONE SPIRIT to help relieve the pressure of indifference forced onto the LAKOTA nation!!!
Hi, Yes I am authorized by OneSpirit to collect & sell donated items, the deduction you recieve is the price paid for the auction after ebay deductions for expenses. Please check out OneSpirits Web Site, I am part of Staff for eBay fund raising.............thanks, Dennis
Assuming these are qualified items I see these as being deductible however the value determined should be one of the following correct? 1. 1040 Quickfinder Handbook 2. www.salvationarmyusa.org 3. Ebay Net Proceeds an acceptable method? I would assume so since this a FMV of item.
Since it appears they are deductible, would not the shipping expenses then be deductible?
If so, Would you enter this amount under cash donations or would that be added to cost of items?
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| December 5, 2007 | |
| Ebay can be tricky because a lot of the time the sales price is low, but the shipping is high. (Fees are based on the sales price but not shipping.) I'm not sure what the answer is. | |
| 6 December 2007 | |
| Anyone else have comments/suggestions on how to treat these charitable donations? | |
| 6 December 2007 | |
| I'm a little confused. I don't see how anybody gets a charitable contribution deduction from buying something, unless the price paid is more than the fair market value of the product. The person who contributed the property gets the deduction. The person who buys it does not, or does only to the extent that the price exceeded the FMV. In an auction like eBay, it would appear that the FMV is determined by the price for which the item sells.
Am I missing something here? | |
| December 6, 2007 | |
| Katie, I think his client is the one who donates the clothing. And in Ebay's case, I do not think price reflects FMV for the reason I sited above. | |
Death&Taxes (talk|edits) said: | 6 December 2007 |
| Might this be related to Discussion: Cabi Clothing Consultant - Deduction/Inv - Startup Kit?? | |
| 7 December 2007 | |
| Katie, I think his client is the one who donates the clothing. And in Ebay's case, I do not think price reflects FMV for the reason I sited above. - Correct I am only concern with whether the Client who donated the goods can take the charitable deduction since they are not directly sending them to the Org. And can you include the shipping costs...and would you include it in the cost of the item donated? RE: cost what valuation method would you use referring to item 1 -3 in Orig Question above?
As for Cabi Issue no this is an separate issue... Thanks everyone for your input... | |
