WORD TO THE WISE: Everyone wants your stuff

Charitable giving and goodwill are on everyone's mind this time of the year, and I am sometimes asked, "How can I get the most out of my charitable contributions?" I have discussed monetary donations on numerous occasions in these columns but what about the donation of your used items?

Whether it's used clothing, household goods or automobiles, there are numerous organizations that want your no-longer-needed items. Some use your donations to provide services for their charitable mission. Others refurbish and sell your items to provide revenue to fund those services.

And some sell your stuff for personal profit. That's the fate of items dropped into many of the donation bins sitting in parking lots all over town. Brightly colored and labeled with "clothing and shoes" or "books." Some have contact information with benevolent sounding names but many times it is difficult to determine who actually owns these bins. Donation boxes sometimes used by charities have been visible for many years and for many represent a no-hassle way to donate your used items.

That similarity might mislead donors into believing their items will be put to philanthropic use. In reality, those donations are bundled up and sold to bulk recyclers, with the revenues going to private companies -- many from outside our community.

That's obviously a concern for local charities that depend on donations of material goods, such as Goodwill Industries, the Salvation Army and other local homeless shelters, because donations placed inside for-profit bins are then unavailable for their missions, thus taking needed support away from the local charity. But it also is a concern for donors who might believe their generosity is helping the less fortunate, when in reality the donations are boosting the bottom line of private companies.

State and local laws usually require that these for-profit bins carry labels marking them as such, but enforcement is difficult because of the sheer number of donation boxes would make policing them a full-time job. Donors who want their items to go to reputable charities should take a few simple steps to ensure their generosity is appropriately directed:

Get a receipt. Donations usually aren't tax-deductible unless the taxpayer includes a signed, dated receipt listing the items donated and their anticipated resale value with his or her tax return. Reputable charities will provide a receipt to the donor, while donations to for-profit companies aren't tax-deductible.

Ask for a copy of the organization's IRS determination letter that verifies it is tax exempt as a charity under section 501(c)(3) of the Internal Revenue Code. Don't assume a charitable-sounding organization requesting donations is eligible to receive tax-deductible gifts.

Read the labels on the bins carefully. Many of the for-profit bins, in an effort to appear philanthropic, will include such language as "a portion of profits goes to charity." By that measure, the company could drop a penny in a Salvation Army kettle and substantiate such a claim.

Know where your donations go. Donors who want to support specific philanthropic causes should contact the charities directly to make sure those organizations are the beneficiaries of their generosity. Some of these agencies offer at- home pickup services for larger donations.

Everyone wants your stuff. With a little care, you can make sure your stuff remains useful long after it has outlived its usefulness to you.

For more consumer tips, visit BBB.org.

Kelvin Collins is president/CEO of the Better Business Bureau of Central Georgia and the CSRA Inc., serving 41 counties in Middle Georgia and the central Savannah River area. This tips column is provided through the local BBB and the Council of Better Business Bureaus. Questions or complaints about a specific company or charity should be referred directly to the BBB at 478-742-7999, www.bbb.org or by emailing info@centralgeorgia.bbb.org.

This story was originally published December 28, 2015 at 8:47 PM with the headline "WORD TO THE WISE: Everyone wants your stuff ."