How to Donate Self Storage Space to 501C3 Nonprofits

By Elizabeth Rayne

Contributions to 501(c)(3) organizations are tax-deductible for individuals and businesses. You can reduce your taxable income and reduce your overall tax bill if you make the right kind of donation to an exempt organization. Donations are deductible only if you itemize deductions are your tax return. If you are interested in donating self storage space, there are a number of steps you should take to find out if your donation is tax-deductible.

Research the Organization

Before making a donation to a charity, you should research the organization to find out if it has 501(c)(3) status. The IRS grants 501(c)(3) status to nonprofit organizations that have a charitable purpose. Once it has this status, the nonprofit may be referred to as an "exempt" organization, meaning it is exempt from income tax, and donations are tax-deductible. Visit the IRS Exempt Organization Select Check page (see Resources), and click on the Search button. From there, limit the search to organizations that are eligible to receive tax-deductible contributions. Submit in as much information as you have about the organization, and check if the nonprofit is on the exempt organization list.

Determine if your Donation is Deductible

Only certain types of donations are deductible. Generally, donations of money or property for the use of an exempt organization are deductible. You cannot deduct a charitable contribution of less than your entire interest in the property. This means that if you are donating storage space for the exempt organization to own outright, the donation is deductible. However, if you will continue to own the storage space, and will simply allow the nonprofit to store supplies or equipment, the donation is not deductible. In other words, you must give up your right to own and use the storage space to the nonprofit to make a deductible contribution.

Ready to form a nonprofit? Get Started Now

Maintain Records

If you plan on deducting your donation, you must maintain a record of the contribution. Request the exempt organization to draft a written acknowledgement of your donation, which must include the date of the donation, a description of the donation, the estimated fair market value, and whether the organization gave you any goods or services in exchange for the contribution. You must have this record by the date your tax return is due.

Report Donation

If your donation meets the requirements for a tax-deductible contribution, you may report the donation if you itemize your deductions on your tax return. To itemize deductions, attach Schedule A to your Form 1040. If the storage space had a fair market value of more than $500, you must fill out and attach Form 8283 to your return.

Ready to form a nonprofit? Get Started Now
Regulations for 501(c)(3) Donations



Related articles

How to Accept Property Donated to a 501(c)3

The Internal Revenue Service has strict rules governing donations of non-cash property to tax-exempt nonprofit organizations. For gifts of property valued at over $250, the organization must provide the donor with a written acknowledgment of the donation that includes information required by the IRS. The organization is required only to acknowledge receipt of the property; it should not use the acknowledgment to establish the property's value. It is the donor's responsibility to establish the fair market value -- or FMV -- of the donated property based on IRS rules and to indicate the value when the deduction is listed on the donor's tax return. If the organization or the donor fails to follow the rules, the donor can lose the right to deduct the donation, and both parties can face IRS fines and penalties.

Non Profit Donation Rules

Nonprofits are businesses organized for a purpose other than generating profit. For that reason, the survival of a nonprofit often depends on acquiring donations from the public. These organizations, however, must comply with state and federal laws that place certain restrictions on the solicitation and use of donated funds. Understanding how these rules affect your nonprofit can ensure the continued existence of the organization.

Can Our Firm Write Off Legal Services Provided to a Charitable Organization?

Many law firms provide free legal services to charitable organizations on a regular basis, but this doesn’t always mean they can take a charitable contribution deduction for it. If you operate your own law firm or are a partner in one that provides similar legal services, it’s important that you understand when you can take a charitable deduction and which expenses you can include.

Doing the right thing has never been easier. Nonprofit

Related articles

How do I Accept Donations on a Pending 501(c)(3)?

Although not required to operate, obtaining federal 501(c)(3) tax status allows nonprofit organizations to accept ...

What Is a In-Kind Donation 501C3?

A 501(c)(3), or non-profit, is an IRS approved organization that has a charitable, religious, public safety, or ...

Are Nonprofit Raffle Ticket Donations Tax Deductible?

For the purpose of determining your personal federal income tax, the cost of a raffle ticket is not deductible as a ...

Non-Profit Requirements for Non-Cash Donations

Encouraging donations is an important part of ensuring the success of a non-profit organization. In order to avoid ...

Browse by category
Ready to Begin? GET STARTED