Clothing Donations Laws and Regulations

What you need to know before you donate clothing

Whether you are making business clothing donations or you have children's or young adult clothes to drop off, there are many factors to consider before you make a clothing donation drop off. Who is benefiting from the clothes donation? Will the recipient receive the clothing first hand, or will the clothing be sold and the money donated? When you donate clothes is that money going to a for-profit organization? What tax benefits are there to old clothes donation?

Other factors to consider are whether or not you are going to go to one of the many clothing donation centers or you are going to use one of the clothing donation bins. If you are going to use on of the bins, is the recipient of the clothing clearly marked? If not, be wary of the organization unless you have previously worked with them. Many for-profit organizations have sprung up and have unashamedly taken clothes to turn a profit.

To find out more about clothing donations laws and regulations:

1. Start with federal, state and local laws on clothes donation.

2. Know both sides of the clothes donation story.

3. Find out what the tax benefits are for clothes donation.

 

Start with clothing donations law

Find out what the laws are surrounding clothing donations.
Try: Read up on information posted from the Internal Revenue Service on tax law changes that may affect people and businesses who donate to charity. Read their tips on year-end donations. Get information from The Press of Atlantic City Media Group about how some states are requiring clothing bins to list intended recipients of their clothing donations.

Be aware of both sides of the clothes donation coin

Whether you are the donation taker or the giver, be aware of what is going on in the industry. If you are donating, be mindful of who you are donating to, and if you are receiving, make sure that your bins have the proper permits.
Try: According to Newsday.com, find out how some communities are banning commercial groups from soliciting donations through clothing drop-off bins and then turning them around and selling them for a profit. NewJersey.com also offers up helpful information about recent clothing donations laws and regulations information.

Keep up with tax information for when you donate clothing

Stay knowledgeable on what the tax implications are for your clothing donations. This can be applicable on a personal and/or a business level.
Try: Access information from Morgan Memorial Goodwill Industries to find out information on valuation and tax receipts for donated clothing and items. Charity Guide gives you helpful tax deduction tax information to help you with the valuation of your donated items.

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