A Nonprofit received $800 in brand new in-kind donations from a donor, which were packed for charity boxes. Should the donations be treated as out-of pocket expenses (code 31) or non-cash donations (code 33) which would require Form 8283?
Did the donor volunteer and incur these expenses? Doesn't sound like it.
More like, the donor gave clothes, food, toys to a nonprofit who is going to give them to needy persons? The donor fills out 8283 to claim the noncash charitable contribution deduction. If its all new stuff the FMV=Cost and they should have the receipts.
Hello Sjrcpa. The donor has a copy of the receipt for these goods the organization needed & packed for soldiers. He purchased the goods two days before they packed it. Based on my research, I'm getting conflicting advise. The 8283 instructions states that out of pocket expense should be reported as cash donations, not on 8283. However, these are donated goods rather than non-reimbursed items.
Different people may disagree. I see it like this:
The books and art supplies I buy to use in the childrens center at the homeless shelter where I volunteer are volunteer expenses. The food I buy and donate to the food pantry run by the shelter is a noncash donation.
Okay. Thanks for the information! I really appreciate this forum.
I've always treated stuff bought new for the use of the charity as a cash contribution. But I agree that reasonable people can agree to disagree on this one.
