Can cleaning out your garage keep more money in your pocket? It just might. By donating items you don’t need but are in good condition to a charitable organization, you can give back to your community and get a tax break, too. Here’s how to sort through your stuff and get your donations organized in no time.
Step 1: Find a good place to start
If possible, clear an area in your garage where you’ll place your donation items. Then, find a starting point in your garage and go either in a clockwise or counter-clockwise direction. You’ll be able to make a clean sweep and go through each section of your garage one time.
Step 2: Mark items that you’ll donate
Are you planning to donate to more than one organization? Or not sure if a family member wants to part with particular items? Keep your donation items organized as you go with boxes labeled for church, school, Goodwill® - and maybe even one marked “not sure.” With Avery Shipping Labels with TrueBlock™ Technology, you can completely cover up existing markings or old labels on boxes, so the information on your new labels are easy to read.
Step 3: Make sure your donations count
Make sure your donations go to qualified charitable organizations. If you’re not sure, just ask the organization, check with the IRS or view this document to find a list of charitable organizations.
Step 4: Create a record of giving
Remember to get proof of your donation. For donations large or small, the IRS recommends collecting receipts, and for monetary donations keeping cancelled checks and credit card statements. If you don’t have the right paperwork, you won’t be able to deduct your donation.
When you’ve got stuff in your garage you don’t need, don’t just throw it out—consider donating your items to charitable organizations. You can put your clean-up efforts to good use by helping those that are less fortunate, while reducing your taxable income.
Other articles you might like:
Tax Time Organization—Prepare to File
Tax Time Organization—Recordkeeping Tips