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Last year I spent some money in support of charitable activities that I'm always confused on how to record for tax purposes. I use It's Deductible to collect all my charitable donations. Each October, I buy about $100 of candy which I provide free in my office as I guilt coworkers to donate their change into one of those orange UNICEF boxes sitting beside the bowl. This year, I took in $383 in donations on top of the cost of the candy. Since the cash was given to me and then I made the donation, I believe I can claim the full amount of that part of the event. And I've read that I can claim the cost of the candy (since it wasn't sold) donated to the event. But I can't figure out if it's a Cash Donation for the value spent on the candy, or an Items Donation, even though I didn't actually give the candy to UNICEF, just used it to lure donations.

Similarly, I donated food to the local food bank and brought fruit to the USO. Those would be considered standard Item Donations since I actually gave the items to the charity, right?

Fuskie
Who is needing the extra 3 days this year...

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If you're going to claim the full donation, then you also going to claim the self-employed income element of $383 (net of expenses). Lucky for you, that's below the self-employment tax threshold, but will be added to your earned income.

Maybe it's best just to leave it off your tax filing, as I'm sure your employer won't think a lot of your candy store business operating while you are on his clock.

Now you can turn your head and ignore all this, or you can do the right thing.
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What are you talking about? I carried out the charity drive with the full blessing of my employer. There was no self-employment income. 100% of the donations were gifted to me and subsequently donated to charity.

Fuskie
Who is still hoping someone will address his question...

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Ticker Guide for The Walt Disney Company (DIS), Orbital ATK (OA), Blue Nile (NILE), Intuit (INTU), Time Warner (TWX)
Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
Disclosure: May own shares of some, many or all of the companies mentioned in this post (tinyurl.com/FuskieDisclosure)
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No. of Recommendations: 2
What are you talking about? I carried out the charity drive with the full blessing of my employer. There was no self-employment income. 100% of the donations were gifted to me and subsequently donated to charity.

Fuskie
Who is still hoping someone will address his question...

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To answer your question, no, you don't get a donation for the money that YOUR CO-WORKERS gave in response to your charitable solicitation. You were acting as a fundraiser, granted. But a fundraiser doesn't get a deduction for funds he collects for charity.

Bill
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Since the cash was given to me and then I made the donation, I believe I can claim the full amount of that part of the event.

How does this statement get past your ethics filter? Do you even have one??

The money was not given to you. It was given to UNICEF. Your co-workers are trusting you to give their money to the charity as indicated on the box. It was never your money.

You can deduct what you actually donated. That would be the money that started out in your own pocket before you put the box on your desk. I suppose you could also deduct the cost of the candy as a volunteer expense.

--Peter
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100% of the donations were gifted to me and subsequently donated to charity.

That is so lame. Can you really say that with a straight face?
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Fuskie ... I see all your TMF "awards, citations etc" but IMHO you have lost a lot of credibility based on your selfish post ... just sayin'

Rich
Arizona
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