New tax laws could affect your write-offs this year
October 15, 2007 | Leave a Comment
By David Sharos Special to The SunWith the end of the 2007 tax year clearly in sight, one of the ways to affect your return is to make charitable donations. Many homeowners receive regular requests for smaller items, including books, clothing, outdated computers and the like. But what if 2007 is your year to consider giving away a bigger item, such as a car or a boat?
As the end of the tax year gets closer, some people think about making charitable donations for the tax benefits.
Here are some tips if you’re looking to donate items with a much larger write-off potential.
Charities in need of used cars abound, but Daniel Borochoff, president of the Chicago-based American Institute of Philanthropy, said the number of vehicle donations has dropped because of restrictions enacted by the Internal Revenue Service regarding their value.
“The issue with vehicles concerns whether they will be sold or used by the charity they are given to,” Borochoff said. “This affects the value and the tax write off you’ll be able to take.”
Before new tax laws took effect, people donating cars were able to check their value with online sources such as the Kelley Blue Book. Borochoff said figures from various sources were sometimes inflated. Since 2005, values are now determined by what the donated car actually sold for.
“People used to claim a deduction based on the market value, but some car values could change, depending on whether they were poor, fair, good or excellent,” Borochoff said.
A better strategy might be to give the vehicle away to a non-profit group that would actually use it, such as Meals on Wheels. The value of such a vehicle would then have to be determined by its current market value.
Naperville Cares, a local charity, seeks drivable cars for those needing to get to their place of employment or for medical reasons. Janet Derrick, co-vice president of the board, said the group’s car ministry picks up operable cars to give them to others who need a vehicle.
“We also repair cars that don’t require extensive work, and then give them to people in need,” Derrick said.
Al Dinon, chairman of the car ministry for Naperville Cares, said the group took in 101 vehicles during its last fiscal year. For tax purposes, he suggested getting an appraisal for vehicles worth more than $500.
“Donors do get to deduct what the car actually sold for, but for cars we give away, we suggest people get a professional appraisal for tax purposes,” Dinon said.
Rules regarding charitable donations may have tightened, but so have demands made upon charities receiving those donations. Susan Fritz, chief professional officer for Naperville’s United Way, said giving in the Naperville area has remained fairly stable over the past several years but that charities, like donors, are under more scrutiny regarding their practices.
“People want to know where their money or donations are going and if local people - their friends and neighbors and people in the community are going to be helped,” Fritz said. “In general, organizations have to work harder to measure outcomes. We are working today with a much more educated donor base.”
Local Businessman, Art Littlefield and Bob Heap, Volunteer and Give Back to Community
October 10, 2007 | Leave a Comment
Naperville United Way is made up of local residents and businesses who volunteer their time, energy and support to answer the needs of our community.
Local businessmen, Art Littlefield with Financial Strategies & Solutions Group and attorney Bob Heap with Kuhn, Heap and Monson, are co-chairs for the 2007 Annual Campaign.
What is your role with the United Way?
Art: Our responsibilities include creating and implementing campaign strategies and goals, reviewing current employer campaigns, and identifying prospective employers to support employee giving campaigns. Bob and I, along with NUW Chief Professional Officer Susan Fritz and NUW Board Members, meet regularly with both existing and future employer campaign participants.
Bob: Art and I have the responsibility of working with the United Way staff and Board to raise the much needed funds to allow the United Way to continue to fund the great social service agencies around Naperville. We try to bring new ideas to fundraising and promote public awareness of this great organization.
How did you get started volunteering at the Naperville United Way?
Art: I began supporting the NUW by sponsoring one of the many Farmyard Friends which were on display throughout Naperville during the summer of 2004. In addition, I have worked with Board Members to identify potential charitable giving strategies that will benefit the NUW in the years to come.
Bob: My law firm has been active in the United Way for many years now. I was approached by some board members to see if I would be willing to be a co-chair. I was more than happy to get involved.
Why do you volunteer for the Naperville United Way?
Art: NUW is a fabulous organization which provides funding to over 30 Partner Agencies utilizing “outcome based evaluations.” It is an opportunity for our firm to support the entire Naperville community and not just individual segments.
Bob: I think that everyone should be involved in public service in their community. There is no better organization than the United Way for providing the funds necessary for helping people right here in Naperville. There are more people than you might think that just need a helping hand when times are tough. That’s not a political issue; it’s an issue of compassion.
If you would like to become a volunteer for the Naperville United Way – Please contact Deena Manna at 630-369-2584.
Investing in Naperville United Way helps more than one person, one charity or one issue, because we support a broad range of programs that improve lives. Naperville United Way is the most effective way to invest in our community to create positive, lasting change.
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