Need help with donating an expensive bike to charity...
#1
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Need help with donating an expensive bike to charity...
Any advice on donating a moderately expensive (2 year old, $1400 new) road bike to charity?
I assume the Salvation Army will take it, but the idea of them selling it for $100 breaks my heart! Any ideas of any other charities that might get better use out of the bike? I am in metro Detroit, and I'm trying to make a donation this calendar year for tax purposes.
Unless I come up with something better, it's off to the Salvation Army with this thing on Thursday.
Thanks for any advice.
I assume the Salvation Army will take it, but the idea of them selling it for $100 breaks my heart! Any ideas of any other charities that might get better use out of the bike? I am in metro Detroit, and I'm trying to make a donation this calendar year for tax purposes.
Unless I come up with something better, it's off to the Salvation Army with this thing on Thursday.
Thanks for any advice.
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I would sell it and donate it. I have never seen a thrift store bike sell for more then 25-35 dollars around here. And the bikes that get sold in that setting will most likely end up rusting in the back yard in a mater of weeks.
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I hope you realize that if the charity sells it for $100, that's the amount considered fair market value and thus the amount of your write off unless you can prove otherwise.
#7
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There may be an organization that could use the bike as part of an fund-raising auction of some sort.
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The Salvation Army personnel may not know bicycles, but they know how to use the Internet. It won't sell for $100 if they can find similar bikes sales on line that will give them an idea of it's value. Another alternative is make sure they know how much it's worth when you donate it to them.
#9
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The Salvation Army personnel may not know bicycles, but they know how to use the Internet. It won't sell for $100 if they can find similar bikes sales on line that will give them an idea of it's value. Another alternative is make sure they know how much it's worth when you donate it to them.
It might make more sense selling it and donating the amount next year. Especially since there is not much time left and it's a bad time to get good prices for used bikes.
#10
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Thanks for the ideas, all. I certainly would sell it myself, but I'm really bizzy right now, and I suck at craigslist, in general (plus I really need the space sooner rather than later.)
There is a charity bike shop in Detroit called "The Hub of Detroit" that sounds like it would be a great place to donate my bike, but they don't appear to have 501(c)(3) status (d'oh!)
I think I may wait until calendar year 2010 to donate this thing. Can't stand to think of it sold for $100...
I'm not a tax attorney, but the code talks about "fair market value"--which is defined as "what a willing buyer would give on one hand, and what a willing seller would part with the item for, on the other..." (this is a paraphrase)
So, in short, I don't believe your information is correct. Of course, the SA will not assess the value of the item for tax purposes either way--this is left to the donor. My thought is a print out of one or more ebay completed auctions is good evidence of the "fair market value".
***DISCLAIMER*** I AM NOT A TAX ATTORNEY. NOTHING IN THIS MESSAGE IS INTENDED AS LEGAL ADVICE.
There is a charity bike shop in Detroit called "The Hub of Detroit" that sounds like it would be a great place to donate my bike, but they don't appear to have 501(c)(3) status (d'oh!)
I think I may wait until calendar year 2010 to donate this thing. Can't stand to think of it sold for $100...
So, in short, I don't believe your information is correct. Of course, the SA will not assess the value of the item for tax purposes either way--this is left to the donor. My thought is a print out of one or more ebay completed auctions is good evidence of the "fair market value".
***DISCLAIMER*** I AM NOT A TAX ATTORNEY. NOTHING IN THIS MESSAGE IS INTENDED AS LEGAL ADVICE.
Last edited by hines drive; 12-30-09 at 04:20 PM. Reason: typo
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Also, I would guess it would end up, out the back door in the hands of a Salvation Army employee long before it would ever be sold. Ask a Goodwill worker sometime about the cherry picking that gose on there.
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Of course, it's silly to ask here about what the SA will do. You should talk to them.
Last edited by njkayaker; 12-30-09 at 04:54 PM.
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there is a way if you can wait to get the donation until 2010. talk with someone like myself that is doing a charity ride (tour de cure, ms 150 etc.)
have them do the leg work of raffling it off for tickets or something. take the cash and donate it to the person of such charity ride. in return he is making his donation goal and you get a recieipt for a donation with out having to work for it or deal with selling it.
if you are doing any charity rides im sure you can get with the person runnng your local gig and have them auction it or raffle it for your cause.
have them do the leg work of raffling it off for tickets or something. take the cash and donate it to the person of such charity ride. in return he is making his donation goal and you get a recieipt for a donation with out having to work for it or deal with selling it.
if you are doing any charity rides im sure you can get with the person runnng your local gig and have them auction it or raffle it for your cause.
#14
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So, in short, I don't believe your information is correct. Of course, the SA will not assess the value of the item for tax purposes either way--this is left to the donor. My thought is a print out of one or more ebay completed auctions is good evidence of the "fair market value".
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The Salvation Army will give you a recipet of the fair market value of the bike to delcare on your tax return. The price in the store reflects a fair price to cover the store's expenses.
#16
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Goodwill in these parts puts no dollar amounts on any donation forms.
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#18
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SA by my house had a Centurion Iron Man on the floor for $400.
Uggh.
Uggh.
#19
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Your opinion on this matter is in direct contradiction to IRS Publication 561
What Is Fair Market Value (FMV)?
To figure how much you may deduct for property that you contribute, you must first determine its fair market value on the date of the contribution.
Fair market value. Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. If you put a restriction on the use of property you donate, the FMV must reflect that restriction.
Example 1.
If you give used clothing to the Salvation Army, the FMV would be the price that typical buyers actually pay for clothing of this age, condition, style, and use. Usually, such items are worth far less than what you paid for them.
<snip>
Cost or Selling Price of the Donated Property
The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. However, because conditions in the market change, the cost or selling price of property may have less weight if the property was not bought or sold reasonably close to the date of contribution.
The cost or selling price is a good indication of the property's value if:
*
The purchase or sale took place close to the valuation date in an open market,
*
The purchase or sale was at “arm's-length,”
*
The buyer and seller knew all relevant facts,
*
The buyer and seller did not have to act, and
*
The market did not change between the date of purchase or sale and the valuation date.
<snip>
Sales of Comparable Properties
The sales prices of properties similar to the donated property are often important in determining the FMV. The weight to be given to each sale depends on the following.
*
The degree of similarity between the property sold and the donated property.
*
The time of the sale—whether it was close to the valuation date.
*
The circumstances of the sale—whether it was at arm's-length with a knowledgeable buyer and seller, with neither having to act.
*
The conditions of the market in which the sale was made—whether unusually inflated or deflated.
(all emphasis mine)
https://www.irs.gov/publications/p561/ar02.html
To figure how much you may deduct for property that you contribute, you must first determine its fair market value on the date of the contribution.
Fair market value. Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts. If you put a restriction on the use of property you donate, the FMV must reflect that restriction.
Example 1.
If you give used clothing to the Salvation Army, the FMV would be the price that typical buyers actually pay for clothing of this age, condition, style, and use. Usually, such items are worth far less than what you paid for them.
<snip>
Cost or Selling Price of the Donated Property
The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. However, because conditions in the market change, the cost or selling price of property may have less weight if the property was not bought or sold reasonably close to the date of contribution.
The cost or selling price is a good indication of the property's value if:
*
The purchase or sale took place close to the valuation date in an open market,
*
The purchase or sale was at “arm's-length,”
*
The buyer and seller knew all relevant facts,
*
The buyer and seller did not have to act, and
*
The market did not change between the date of purchase or sale and the valuation date.
<snip>
Sales of Comparable Properties
The sales prices of properties similar to the donated property are often important in determining the FMV. The weight to be given to each sale depends on the following.
*
The degree of similarity between the property sold and the donated property.
*
The time of the sale—whether it was close to the valuation date.
*
The circumstances of the sale—whether it was at arm's-length with a knowledgeable buyer and seller, with neither having to act.
*
The conditions of the market in which the sale was made—whether unusually inflated or deflated.
(all emphasis mine)
https://www.irs.gov/publications/p561/ar02.html
Deduction more than $500. If you donate a qualified vehicle to a qualified organization and you claim a deduction of more than $500, you can deduct the smaller of:
*
The gross proceeds from the sale of the vehicle by the organization, or
*
The vehicle's fair market value on the date of the contribution. If the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to figure the deductible amount, as described under Giving Property That Has Increased in Value, later.
Form 1098-C. You must attach to your return Copy B of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, (or other statement containing the same information as Form 1098-C) you received from the organization. The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle.
(emphasis mine)
https://www.irs.gov/publications/p526...link1000229704
*
The gross proceeds from the sale of the vehicle by the organization, or
*
The vehicle's fair market value on the date of the contribution. If the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to figure the deductible amount, as described under Giving Property That Has Increased in Value, later.
Form 1098-C. You must attach to your return Copy B of the Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, (or other statement containing the same information as Form 1098-C) you received from the organization. The Form 1098-C (or other statement) will show the gross proceeds from the sale of the vehicle.
(emphasis mine)
https://www.irs.gov/publications/p526...link1000229704
And of course, I haven't done my own taxes in several years. And did I mention that I'm not a tax attorney?
***DISCLAIMER*** I AM NOT A TAX ATTORNEY. I AM NOT GOING TO DECLARE $%^! WITHOUT RUNNING IT BY MY ACCOUNTANT FIRST. NEITHER SHOULD YOU!
#20
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there is a way if you can wait to get the donation until 2010. talk with someone like myself that is doing a charity ride (tour de cure, ms 150 etc.)
have them do the leg work of raffling it off for tickets or something. take the cash and donate it to the person of such charity ride. in return he is making his donation goal and you get a recieipt for a donation with out having to work for it or deal with selling it.
if you are doing any charity rides im sure you can get with the person runnng your local gig and have them auction it or raffle it for your cause.
have them do the leg work of raffling it off for tickets or something. take the cash and donate it to the person of such charity ride. in return he is making his donation goal and you get a recieipt for a donation with out having to work for it or deal with selling it.
if you are doing any charity rides im sure you can get with the person runnng your local gig and have them auction it or raffle it for your cause.
Doesn't happen here. Admittedly, I've never donated an item worth a great deal before. But even decent electronics (e.g. Made in France food processor worth probably $75,) the value part of the slip is always left blank 'round here. :shrug:
#21
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I was in a "thrift store" the other day (not SA), and saw a vintage bike in nice condition with a $300+ price tag on it. Not exactly your situation, but you might ask them what they think is the best thing to do.
#22
Fred-ish
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You say my comments contradict IRS publications, yet nothing you quoted of the IRS publications invalidated any of my comments. I see it would be a waste of my time to continue further with this.
#23
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And at any rate, what's the point in coming into this thread, asserting a point, patting yourself on the back about your credentials when questioned, and then refusing to cite any authority (other than your own credentials) to support your point? More to the point, what has a fellow trying to muddle through the tax code while donating to charity done to offend you? Not taken your naked word as gospel as to the tax code?
All you've done here is stroke your own ego while muddying the waters. So again, I ask: if you want to contribute to this discussion by setting everyone straight, I request that you do so. If not, you're just adding more noise to the internet...
#24
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On further reflection...
And when did I ask you for tax advice in the first place? You just don't expect to wander into a bike forum, ask a question about charity, and face misanthropic behavior of this sort...
edit: Happy New Year, everybody!
Last edited by hines drive; 12-31-09 at 09:54 AM. Reason: inject some holiday cheer.
#25
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Lower of cost or market value? How do you practice in front of the IRS? You mean they actually watch every move you make?