DONATION OF RUGS FOR CHARITABLE PURPOSES

What is Sufi Service Committee (Boston)?

Mo Nooraee is also the director of Sufi Service Committee (Boston), a charitable organization formed under California Laws to address the most pressing needs of our community. Sufi Service Committee’s monthly report is available at www.nimatullahisufiboston.org/charity

A. Charitable Organizations

Noor will arrange donation to a specific cause if the donor wishes, or otherwise on its own identify a charitable organization with 501c status as defined by the IRS to receive donated rugs. Noor will make delivery to the charity with no charge to the donor.

Listed below are some of the non-profit organizations Noor has had a working relationship with during the last three decades. Please note: not all organizations will take rugs for donation!

Recipients/beneficiaries of donations arranged by Noor include:

  • YMCA, Chinatown, Boston
  • St. Cecilia’s Church, Boston
  • Lovelane Riding Program, Lincoln, MA
  • Somerville Housing Coalition
  • WGBH
  • Spare Change Newspaper (Cambridge, MA)
  • Rosie’s Place, Boston
  • Longy School of Music, Cambridge
  • St. Benedict’s Abbey, Stillwater, MA
  • Winsor House, Sancta Maria Hospital, Cambridge
  • New England Conservatory, Boston
  • Heading Home

How does a charity benefit from donated rugs?

A non- profit organization that receives a rug may, in its sole discretion:

Keep it for use in its building , offices or facilities, or
Sell it in a live or silent auction in a fundraising drive

B. Direct help/Reaching out

Noor has been helping the poor, homeless and the hungry for years. Often we hear of families or individuals who could use an Oriental rug but cannot afford to buy one. Noor, at its sole discretion, will present donated rugs to these families or individuals, obtaining receipts. Noor will give donor a copy of such receipt if requested. Such donation is not tax deductible, but is a pragmatic way to pass along a less expensive rug by giving it to someone who can use (and we hope appreciate) it.

C. Sale and Forwarding the Proceeds

In the following situations, Noor will sell donated rugs and forward the net proceeds to charity.

Some charitable organizations do not accept rugs, often because they are unfamiliar with how to handle the donation of a rug in such a way as to financially benefit from it.

Keeping a rug at Noor incurs the cost of its regular maintenance as well as insurance. Sometimes it is cost-prohibitive to keep donated rug(s) at Noor for more than three months. On average, it costs Noor $50/month per rug to store it here.

During the course of daily business, if Noor finds a customer willing to pay cash for a donated rug being held at Noor, Noor, in its sole discretion, will sell it on behalf of the charity. Noor is aware that a charity would usually prefer to receive immediate cash rather than wait for a potentially larger sum at some point in the possibly distant future. The selling price of donated rugs may possibly be lower than fair market price, retail value, wholesale price, or appraised value.

D. Sale of Donations by Consignment from a Charity

Sometimes Noor does give donated rugs to a charitable organization and has its official representative sign a tax Form 8283 for the donor. However, the charitable organization may then consign the rugs to Noor to try to sell and then forward the net proceeds. In such cases, as soon as the charitable organization signs the Form 8283, the donor can declare the donated rug for taxes at the appraised value. Subsequent sale by Noor is an independent contract between Noor and the organization, with no further involvement of the donor.

Tax Form 8283

In Form 8283, the IRS requires that the recipient of the donation be a qualified charitable organization for the IRS (qualified under Section 170c) and that it received the property as described, i.e. the rug (not the money from the sale of the rug).

If Noor gives a donated rug to a charitable organization, we will then properly and legibly fill out the relevant sections of Form 8283, and collect the required signature from the person with authority to sign on behalf of the organization receiving the donation. In order to respect and protect the confidentiality of the donor’s personal and tax information, Noor will fill out only sections I (description of donated property), II (declaration of appraiser, if the donor has paid the fee) and IV (recipient acknowledgment, which the authorized representative will sign). Noor will hand deliver or mail such form to the donor in a timely manner, to be included in tax documents for the next calendar year.

If the donor does not wish to make a tax deduction, Noor will still give the rugs to the charitable organization or even to an individual in need, with a receipt but no Form 8283. In such cases, the donation cannot be treated as a tax deduction.

Appraisal

A. If the rug to be donated is worth less than $500, a certified appraisal is not needed.

B. If the rug is worth more than $500, it is recommended that the donor pay an appraiser to fill out section III of Form 8283, and then supply the information to Noor.

How long does the donation process take?

The process of donation normally takes at least one year, plus the time needed for cleaning and repair.

The donor will provide Noor with contact information and is requested to keep it up to date.

Noor does not provide any tax or legal advice.

In this protocol, “Noor” means Noor Oriental Rugs, Inc. “You” are the owner/possible donor of the rug.
Thank you in advance for your generosity!