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Donation of Rugs for Charitable Purposes

Donating Rugs to Charity in Boston: Options, IRS Form 8283 and Appraisals

What is Sufi Service Committee (Boston)?

Mohammad Nooraee is the director of the Sufi Service Committee (Boston), a charitable organization formed under California Laws to address the most pressing needs of our community. The Sufi Service Committee's monthly progress report is available at www.nimatullahisufiboston.org/charity. Noor organizes weekly homeless shelter brunches, coat and clothing drives, and food bank transport throughout the Boston area.

A. Qualified 501(c)(3) Charitable Organizations

Noor will arrange donations to a specific cause if the donor wishes, or otherwise identify a qualified 501(c)(3) charitable organization to receive the donated rugs. Noor delivers the rugs directly to the charity with no charge to the donor. Beneficiaries include the YMCA (Chinatown, Boston), Rosie’s Place, Somerville Housing Coalition, St. Cecilia’s Church, Lovelane Riding Program, Winsor House (Sancta Maria Hospital), Longy School of Music, and New England Conservatory.

A non-profit organization receiving a rug may, in its sole discretion, keep the rug for use in their facilities, or sell it via a live/silent auction in a fundraising drive.

B. Direct Outreach & Direct Help

Out of deep care for our local community, Noor presents donated rugs directly to low-income families or individuals who could use an Oriental rug but cannot afford to buy one. Noor secures direct receipts from the recipients and provides copies to the donors upon request. Please note that direct outreach donations are not tax-deductible under IRS codes, but represent a pragmatic way to directly support someone in need.

C. Sale and Forwarding the Proceeds

In cases where a charity does not accept rugs (due to storage constraints or unfamiliarity with how to liquidate textile donations), or when keeping a rug at Noor becomes cost-prohibitive (storing a rug at Noor costs an average of $50/month in maintenance and insurance), Noor will sell the donated rug. In its sole discretion, Noor will sell the rug on behalf of the charity and forward 100% of the net proceeds directly to the designated charity.

D. Consignment from Charity

In some cases, the charitable organization signs the tax Form 8283 for the donor and consigns the rugs back to Noor to manage the sale. In these cases, as soon as the charity signs the Form 8283, the donor can declare the donation for taxes at the appraised value. Subsequent sales are treated as an independent contract between Noor and the organization, separating the donor from further involvement.

IRS Tax Form 8283 and Appraisals

For tax-deductible donations, Noor manages Form 8283 completion: Section I (description), Section II (declaration of appraiser), and Section IV (recipient acknowledgment). We collect the authorized charity signature and deliver the completed form to the donor to include in their tax filings.

Appraisal Guidelines:

  • Rugs worth less than $500: A certified appraisal is not required.
  • Rugs worth more than $500: The IRS requires a certified appraiser to complete Section III of Form 8283 (appraisal fee is paid by the donor).

Timeline: The donation process normally takes at least one year, plus the time needed for cleaning and restoration. Noor does not provide tax or legal advice, and owners are encouraged to consult their tax specialists.

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