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Computer Donation - IRS Tax Information
I.R.S. Rules for computer donations
Computer with Causes accepts a wide variety of items and can usually
place useful equipment with a multitude of charitable programs
around the United States and abroad.
A list of common donated items might include: PC Desktop
Systems, PC Laptop Systems, CD or DVD ROM Drives, Copy Machines, CPU
(Partial Systems, Digital Cameras, Docking Stations, Pen/Drawing
Tablets, Fax Machines, Flatbed Scanners, Floppy Disk Drives,
Handheld Scanners, Hard Disk Drives, Keyboards, Modems, Monitors
(LCD and CRT), Mouse's, Network Devices, Network Interface Cards,
Plotters, Printers, Software and software licenses, Sound Cards,
Tape Backup Drives, Video Cards, and Zip Drives.
What are Computers with Causes minimum requirements?
Pentium II & Higher CPUs (486 & Pentium No Longer Accepted although
exceptions will be made for bulk donations). Alternative CPUs
accepted if Pentium II equivalent or better. Hardware needing repair
is considered on a case-by-case basis where repair capabilities are
available.
I'm not a Corporate donor, can I still help?
Yes! In fact, individual donors like you are what allow us to help
so many people all over the country. Computers with Causes provides
tax deductions based on fair market value for individual donors as
well as large companies. Shipping costs are also tax deductible
under applicable rules and regulations.
What are the tax benefits for donations by individuals?
For individuals, the charitable deduction for contributions of
technology equals the fair market value (retail used value in the
current market place) of the donated property. The donation is tax
deductible for the year in which our organization receives the
equipment. Shipping costs are also tax deductible under applicable
rules and regulations.
What are the tax benefits to corporate donors?
The IRS code provides for a tax deduction for property donated to a
charitable organization such as Computers with Causes under
applicable rules and regulations. For Corporate donors, tax
deductions are usually limited to the amount of the donor's tax
basis in the property contributed (Exceptions may apply, consult
your tax advisor).
The donation letter provided to you by Computers with Causes will
reflect the year in which our organization receives the equipment.
Warehousing and shipping costs are also tax deductible under
applicable rules and regulations.
What are the special benefits to corporate Donors for donations
of inventory?
Under
IRS Section 170(e)(3), corporations that donate inventory
(i.e. Property sold in the normal course of business) to certain
charitable organizations, may receive an additional tax benefit.
Section 170(e)(3) provides a deduction for corporate contributions
of inventory as much as twice the donor's adjusted basis in the
property.
The charitable deduction for contributions of inventory (from a C
corporation) will be the total of the donor's tax basis in the
donated inventory plus one-half of the difference between the
inventory tax basis and its fair market value. This is limited to
200% of the inventory tax basis plus any incidental costs (i.e.,
shipping, warehousing) associated with donating the inventory. If
the fair market value of inventory is less than the donor's tax
basis in the
donated inventory then the charitable deduction should be equal to
the fair market value.
Consult your tax advisor for consideration of this option.
Individual Donations
Corporate Donations
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