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Thinking of donating a few thousand CDs to Goodwill

blownsi

blownsi

Super Member
I have about 10k CDs in my collection and I'd like to thin the heard. I've tried selling some online and locally to shops but it's a pain to get rid of a large quantity.

According to Goodwill's site, I can claim $2 ea for CDs on taxes. I'm in the 28% tax bracket so for every 500 cds I donate, I should get $280 back on taxes. That's more than I could get at any local shop, craigslist, etc.

I just want to make sure that I'm not doing anything illegal and that I have the proper paperwork in case I'm audited by the IRS. Should I make a list of every title donated? Pictures?
 
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blownsi said:
I have about 10k CDs in my collection and I'd like to thin the heard. I've tried selling some online and locally to shops but it's a pain to get rid of a large quantity.

According to Goodwill's site, I can claim $2 ea for CDs on taxes. I'm in the 28% tax bracket so for every 500 cds I donate, I should get $280 back on taxes. That's more than I could get at any local shop, craigslist, etc.

I just want to make sure that I'm not doing anything illegal and that I have the proper paperwork in case I'm audited by the IRS. Should I make a list of every title donated? Pictures?
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There is nothing illegal about making a charitable donation. They give you a receipt, which should be sufficient for tax purposes. I am not a lawyer, this is not legal advice.
 
blownsi said:
I have about 10k CDs in my collection and I'd like to thin the heard. I've tried selling some online and locally to shops but it's a pain to get rid of a large quantity.

According to Goodwill's site, I can claim $2 ea for CDs on taxes. I'm in the 28% tax bracket so for every 500 cds I donate, I should get $280 back on taxes. That's more than I could get at any local shop, craigslist, etc.

I just want to make sure that I'm not doing anything illegal and that I have the proper paperwork in case I'm audited by the IRS. Should I make a list of every title donated? Pictures?
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I would at least get a receipt with the # of CD's listed on it. That alone might be enough for an auditor, but don't quote me on it.

Any chance you can just claim it as a "one-time gift" (to me) that you can add to your yearly deductions? :naughty:
 
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Gang-Twanger said:
I like that idea a lot... And they would surely know something about deductions too.
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I asked my library about donating some cd's. they said that they basically put them on sale with books they are selling. I asked why they didnt get put with the other cd's for check out?!! she said, "well, if you think its something we may not have, then you can suggest for it to stay in the collection". How could I say, "you dont have any of the 400 cd's I'm offering, which is why I'm offering them." I tried to discuss this with her further, but she showed no real interest in what I was saying.

blew my mind. I was offering up a killer donation to improve the library. But they basically didnt want to bother with it. So, be aware. Find out their intent. If your goal is to have it go to good use, the library may or may not be the way to go. Goodwill will at least get you the write off. and people like me shop there!!
 
keithpgdrb said:
I asked my library about donating some cd's. they said that they basically put them on sale with books they are selling. I asked why they didnt get put with the other cd's for check out?!! she said, "well, if you think its something we may not have, then you can suggest for it to stay in the collection". How could I say, "you dont have any of the 400 cd's I'm offering, which is why I'm offering them." I tried to discuss this with her further, but she showed no real interest in what I was saying.

blew my mind. I was offering up a killer donation to improve the library. But they basically didnt want to bother with it. So, be aware. Find out their intent. If your goal is to have it go to good use, the library may or may not be the way to go. Goodwill will at least get you the write off. and people like me shop there!!
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Every library has different policies. You should be able to get a tax deduction for a charitable deduction in any case, whether they add the music discs to their collection or sell them to support the library.

Not to make a big deal about it, but I always wonder about why people are so particular about what happens to things they no longer own. I'll give X to you, but you have to promise to do Y with it. What's up with that? If it matters what happens to them, keep 'em. If you give 'em away or sell 'em, what happens to them isn't really your concern. Just my take on it.
 
Either of them are deserving recipients of the donation and the donor certainly deserves the tax deduction based on the law. I've donated quite a bit to Goodwill in recent years, including probably 400 LPs. I just take whatever deduction the tax software for that year says it's worth, so that counts as the independent appraisal that is required for donations of this size.
 
donations

I make donations all the time and itemize them on taxes.

The last time I read all the way through the IRS forms for donating, it said whatever value you set must be backed by a "source of value" and one source is thrift store value.

SO, using the selling price of items at the thrift store is viable.

SO, if the GW sells them for $2, that's what you claim.

The absolute bottom line on taxes is paper trail. As long as you have a valid paper trail, you're good.

Now, if you donate a LOT and never did an itemized deduction before and suddenly claim $20000.00 deduction, they may raise an eyebrow. SO I would take a photo of the donation. The pile, you and the pile, you and the pile at the donation site. Maybe a photo of one of your CDs with a price tag after they put them out.

Then, its all good. Your bulletproof and an outstanding citizen helping the community.
'

Personally, I really really doubt that they even try to argue with donations. They can't figure out the other stuff when there is a full paper trail. I've had to "correct" them a few times.
 
if you are ever in the cleveland area you could bring them to half price books. there are several locations in that area and they will make you a cash offer on all of them. just another option besides the goodwill donation.
 
Thanks to all for the advice. I will do pictures and a receipt. I like the idea of me holding one of the priced cds after it hits the floor in a day or two also.

I have tried the local libraries and I got the same answer as above. The "friends of the library" sells off used items to support the library. They will take them but they didn't seem interested.

I haven't tried half priced books but "The Exchange" wanted nothing to do with a large lot of cds. They told me that I have to wait around for an appraisal, so I should bring them in 100 at a time. Basically I'd spend more in gas than they are worth lol.
 
Here is the IRS code. Once you break the $500 limit in a single year, it starts to get messy. Might want to do part this year and hold part for January to push it into the next year. If you have an accountant do your taxes, you might want to check with them - and check to see how much they charge to file the forms required.

http://www.irs.gov/taxtopics/tc506.html
 
You will need an itemized receipt issued by the receiving charity. It need only list X number of CDs on the receipt and the value THEY assign, not you assign nor their selling price.

Yes, once you hit the level requiring the addtional disclosures then you have list the individual items and cost plus be able to substantiate the cost listed. The IRS reporting is nutty requiring the level of detail but they want to make sure the charity giving scams are stopped. People will buy something for a $1.00 and immediately donate it and claim $2. Sounds insignificant but a few years ago there was the medical drug scam in the millions of dollars that got discovered.

I used tohave some clients who simply said the heck with the deduction or only claimed below the thresh hold as to the audit costs usually they found outweighed the tax savings,
 
Just FYI, Goodwill often takes weeks to put out certain media items.

Giving it to Goodwill is a good idea, but odds are only a small fraction of them will get sold.
 
some of the GWs have special customers that pay them to have first look so they can cherry-pick the items before the public gets a chance at them. i sort of look at that as unfair.

also, some of the GWs track ebay for pricing.
 
You could try offering them for sale for $2 each to the CRAC guys... Just sayin'.
 
dr*audio said:
You could try offering them for sale for $2 each to the CRAC guys... Just sayin'.
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Or list them in bunches of 10 or so in Barter Town. Your tax savings is $0.56 each, so if you sold them for $1.00 each with a minimum of 10 or 20, plus shipping, you may realize more, which you could donate as cash where ever you please.

I wouldn't do eaches as sending out single or a couple CDs is a PITA and time consuming, but if they're good stuff the guys in BT should eat them up for a buck or two.

Granted it's more work than unloading a couple cartons at a neighborhood thrift, but you would at least now they are finding good homes and not winding up in the trash someplace.
 
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