Emergency Request For Donated Furniture

Furniture World Magazine

The Greater New York Home Furnishings Association received an urgent call from "Partnership For the Homeless," an organization that furnishes apartments for formerly homeless people. Their inventory is literally bare, and they related that this has been devastating to have so little for their families to choose from. Manufacturers, Importers, Reps and Retailers who are interested in the possiblity of making a donation (or need more information) can contact: Barbara J. Goldstein Executive Director Greater New York Home Furnishings Association 200 Lexington Avenue Suite 418 New York, New York 10016 212-725-0091 Fax-212-481-8655 GNYHFA6@aol.com Inventory Deduction Program for In-kind Donations to Furnish a Future Furniture Bank -- Tax Benefits for Manufacturers and Corporations The The Greater New York Home Furnishings Association and partners are teaming with Furnish a Future to look for furniture manufacturers, wholesalers, importers, home furnishings representatives, designers and retailers who are willing to donate excess inventory to "furnish a future" for New York City families who are moving from homeless shelters into their first new homes. Excess inventory, including odd pieces and casegoods needing only minor touch-up or repair will be accepted. Lamps are desperately needed. Upholstered products need to be in perfect or near perfect condition. Furnish a Future is a charitable 501(c)3 organization. As such, donations made to our organization are deductible to the full extent under IRS code. Corporations who donate to our organization may receive an additional tax deduction in addition to the regular deduction on their tax forms. Section 170(e)(3) of the US Internal Revenue Code permits regular (C) corporations to deduct up to 200% of the actual cost (donor's adjusted basis in the property) if excess inventory is donated to certain charitable organizations, such as Furnish a Future (use IRS form 8283). Donations cannot be sold and must only be distributed to the ill, needy and infants (which most interpret as anyone under the age of 18). Furnish a Future meets this criteria. Section 170(e)(3) of the IRS code stipulates that if a corporation makes a donation of property related to their normal course of business (e.g. a bed manufacturer donating beds, or a retail store donating inventory) to our organization, they are allowed to claim an additional one half of the difference between the cost and the fair market value of their donation (C-corporations only). For example, a bed manufacturer donates a bed that costs $100. The fair market value for the bed is $200. The bed manufacturer is thus entitled to claim a deduction of $150 ($100 cost + half of the difference between cost ($100) and fair market value ($200)). One limitation placed on this additional deduction is that the total deduction cannot be more than double the cost. Using the previous example, if the bed cost $100, but sold on the market for $400, the most the corporation could claim is $200. Because the difference between the market value and the cost is greater than the original cost, the corporation could only claim the maximum of twice the cost. Tax reporting procedures: With every in-kind donation to Furnish a Future, a thank you letter confirming your donation is sent. We do not determine values for items donated to our organization. It is the responsibility of the donor to determine and report to the IRS the value of the item donated. Please keep our thank you letter in your files as a receipt of your donation. When reporting your charitable contribution to the IRS, there are different procedures to take according to the value of the donation made. Consult your accountant department for specific procedures. Disclaimer: This is how we interpret Section 170(e)(3) of the IRS code. Tax laws do change please consult your tax advisor