A non-profit organization stores donations in my house. Can I deduct the value of the square footage of storage space the donations occupy?

Forum|Forum|7 years ago
June 6, 2019
1 reply
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We assist a non-profit which collects donations of backpacks & school supplies, clothing, household goods, tools and some construction materials. We collect and store these items all year round and then ship a 40' container to Honduras each fall.

We purchase shipping materials (boxes, tape, markers and paint to label the boxes) and wood and tools to build crates for over-sized items. We also go pick up donations at various homes and churches around the county and rent a forklift and pallet jacks needed to load the container. We do this all volunteer. But I am wondering if such things as I've mentioned could be considered under "Charitable contributions" on my tax return?

We also provide housing and meals to the missionaries who "own" this 501c3 when they come to the states. Normally that is between 6 and 10 weeks a year. Would this be considered a Charitable Contribution?

Best answer by IsabellaG

Some of the things that you list are deductible, and some are not.

You can deduct the out of pocket expenses for shipping materials, and the fork lift rental and the mileage ( at 14 cents/mile) incurred on behalf of the charity.

You can't deduct the value of your storage space or the value of the housing provided to the missionaries, and you can't deduct the meals you provide to the missionaries because you can't deduct expenses for feeding individuals. It's possible that you could claim that the meal expense is through an arrangement with the 501(c)(3) charity that the missionaries "own" (similar to hosting a foreign exchange student) but the IRS would likely scrutinize this arrangement, so be sure to maintain records of the expense, and a written agreement with the charity.

IsabellaGAnswer

Level 13

Some of the things that you list are deductible, and some are not.

You can deduct the out of pocket expenses for shipping materials, and the fork lift rental and the mileage ( at 14 cents/mile) incurred on behalf of the charity.

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