I make and donate lapghans to a local nursing home....can I deduct the cost of the yarn?

[CherylW · Accepted solution]

Yes, you may.

This, from IRS Publication 526:

"Generally, you can deduct contributions of money or property you make to, or for the use of, a qualified organization. A contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement."

The afghans are for the use of a qualified organization.  Make sure that you get the home's tax identification number for your records.