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Internal Revenue Service
Rules for Donating Computer Equipment
Computer with Causes accepts a wide
variety of computer equipment and will place useful
equipment through the multitude of educational environments
and charitable causes we support throughout the United
States and abroad.
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.
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 IV & Higher CPUs (486 & Pentium No Longer Accepted).
Alternative CPUs accepted if Pentium IV 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 is part of the
Works
of Life charitable organization and 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.
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