In the time since I starting writing the three posts in this series, the final section grew from two options to three. The more I read up on the topic, whether it's best to donate or sell, it became apparent that I should add a third category, when is it best just to throw it away?
A good cause ...
We've covered selling pretty well in the last post so this one will focus more on donating, with just a bit of time spent on what to throw out. With the number of options available to sell an item, it might seem like people would be donating less than they used to. Thankfully for the charities, even though more and more items are being sold, thanks to our rampant consumerism (fancy term for all the shopping we do) there are also lots more items donated than ever before. Think about all the thrift stores you see (in our area Goodwill and CHKD have the most locations) with more and more opening in strip centers all over town. Bargain hunters love to hunt for treasure and provide the charities with a strong source of income (CHKD raised 2.5 million dollars last year in its 28 Hampton Roads, Richmond and North Carolina locations). We link to the majority of local charities on our site if you’re looking for a place to donate.
There are two key reason people choose to donate rather than sell. First off, it feels good to donate your gently used stuff, whether it's going directly to people who need it or will raise funds for a worthwhile charity through its thrift stores. The guilty feeling of wasting money and/or buying things you don't really need can be assuaged with a quick trip to the Goodwill drive-through (yes, they actually have those!). Picking a charity before you declutter or organize can help motivate you to rid yourself of even more stuff you don’t need/want. Knowing the cause that you’re going to support can help you when you’re “on the fence” with a certain item.
The other primary reason is how easy/quick it is to donate. It takes time to haul your things to the consignment store, only wait (sometimes months) for your items to sell and reap the proceeds. Garage sales take even more time and add the pressure of haggling with your neighbors over whether that unused stationary bike is worth $30 or $35 … I had one a few years ago and hated the entire process (but maybe that's just me?).
So the general rule of thumb when considering whether to sell or donate is “Is it worth it?” in your time and energy to go through the process of selling. If it's a valuable item, it's probably worth it. If you have a lot to sell, it might be worth it. But everyone values their time differently so the decision is quite personal. The other consideration is the tax implications of donating. Depending on your income and other deductions, you may get more from donating than selling, you or your tax advisor will know best. Determining the value of the donation will factor into your decision. Goodwill has a valuation guide for everyday items. If you think your items are worth more than that valuation, the “sold-listings” on eBay may justify a higher deduction. For more valuable donations, single items you claim are worth $500 or more and groups of items over $5000 require an independent appraisal as proof for the IRS.
When in doubt ...
There is a basic premise we follow in our organizing business that I grew up with. “When in doubt, throw it out” has served us and our clients well over the years and is a good rule to follow when determining whether to donate something or simply recycle/trash it. If it's in tough shape, torn, tattered, rust, broken … it's not a donation, its trash you should take care of. Donation centers have thousands of items to sort, organize, price and sell. You’re not doing them any favors by sending them your trash. It simply slows their process down and adds to their burden. The idea was to help the charity, not cause them extra work … right?
Have any thoughts on the topic? Share it in the comments. This blog is simply our impression of things. If you agree, disagree or have something to add, let us know. We learn every day and appreciate other ideas …