August 26, 2009
Americans Report Making $47-Billion in Noncash Gifts
By Grant Williams
Washington
Americans reported making donations of $46.8-billion in noncash gifts in 2006, counting only the taxpayers who took total deductions of more than $500 for such gifts during the year, according to a new report from the Internal Revenue Service.
The $46.8-billion figure is an increase of 14 percent over the total of $41.1-billion in noncash gifts reported in 2005, even though the number of tax returns reporting these donations declined by 6 percent, from 6.6 million in 2005 to 6.2 million in 2006.
The biggest share of noncash contributions consisted of corporate stock, clothing, and household items.
The IRS noted that, because of a change in federal law effective in August 2006, people thereafter could not claim charitable deductions for used clothing and household items that were not in good condition or better. (In previous years, donors could deduct the fair market value of such items regardless of condition.)
“While it is not known what effect this had on donations of these items, the amount deducted for clothing and household items declined 10.8 percent and 1.0 percent, respectively, between tax years 2005 and 2006,” the IRS said. “In previous years, from tax years 2003 to 2005, there was a steady increase in both clothing and household deductions.”
The IRS said the amount of donations of corporate stock — the largest share of total noncash donations — increased by $6.7-billion, or 40.7 percent, between 2005 and 2006, rising from $16.3-billion to $23-billion.
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Hello.
You should include the year of the study, 2006, in the headline. There are all kinds of studies flying around by the nonprofit infrastructure groups and they can give a wrong impression that right now in 2009 nonprofits are not in trouble.
Nonprofit groups are in trouble. Giving has declined, need has increased. Please clarify what year you are talking about in your headlines.
Thank you.
Don
— Donald Griesmann Aug 26, 02:15 PM #
I agree wtih Don. Glancing at the title gives a false sense of security at a very scary time.
— Sarah Schroeder Aug 27, 08:57 AM #