I know it's a financial hit but I would consider it an chance to get recognition of you and your product into what I would consider a group that has disposable income. If you were to do it ask what type of recognition you will get for the donation (a placard on the table next to your product with your farm name or a thank you in the program) and be sure to have good labels on the jars. It may be that this will lead to great sales in the future so you will have to weigh the finacials of it with that in mind. We have worked with charities a few times and have been pleased with the long term results. I personally would find out exactly what they want from you and procede from there.

I don't know if they will have the jars out (not very authentic) so I was hoping a mention in the program or menu.

I don't want to seem like I'm pinching pennies here, if I knew for sure that my participation was going to be limited to the jams and jellies they initially contacted me about, I'd just donate them. But since this could be a major drain on my time for the next month, and I've already (perhaps foolishly) offered my help with the rest of the menu for little (just what I have to spend on ingredients I don't grow) or no cost, I'm wondering if I can get something out of this? Or just bite the bullet and if I end up donating all my products/efforts?

Can I count the market value of everything (pickles, etc.) I donate as a business expense ("advertising"?)so take it right off my non-existent profit this year? Charitable deduction (as in personal income tax) won't count for much. I know I can't count my time.

Thanks

you cannot deduct the market value of what you donate. you can deduct as a business the cost to produce what you donate if the organization is a 501(c)(3) organization. the cost would already be included in your business expenses.
there is no charitable deduction for donating items you produce.
i wouldn't donate anything to a historical society in hopes of increasing future sales. the only place i donate to is the local food bank. you should get paid for your hard work.

I would discount the items to the cost of ingredients and ask for the jars back after the event. Be sure to inform them that normally it would cost $xxx, but if they would put "xxx donated by xxx", you will give them a discounted price. That would cover your costs and still give them a lower price.

You can deduct the price off as a charitable donation, if you file itemized. OR you can declare your expenses on Schedule C. What it would do, tax wise, would give you a lower income, but same expenses.

You are able to deduct for items that you produce. You will get some more sales, if the historical society mentions your farm in their phamplets or brochures. Of course, I have to mention this legally, please contact your tax professional due to differences in local taxes and situations. All tax preparer must state this.

Marla

Thanks Marla - taxes are going to be hard to figure this year, gotta use a CPA and not do it myself (I have been doing our personal ones for years, even did business when I was single and sold Tupperware).

Let's say they decide they want Wild Grape Jelly and Autumn Fruit Jam (made with wild grapes, apples, store-bought plums, sugar and spices). I planned on asking for the jars back.

I used 4 plums (have to look up cost but say $2) and 1.5 lb of sugar (at 64 cents/lb) plus our own grapes and apples for the Autumn Fruit jam, they may take 1/2 the batch so that's $1.48 and a few cents for lemon juice and spices say $1.50. Jelly used same amount of sugar so another 50 cents - that's $2 cost (maybe include cost of 6 lids so another 87 cents but I'm getting jars back). So $2.87 plus electricity? For 6 jars of jams worth $36 at market. Wild grapes and apples are "free" (except for my labor picking and preparing, and DH's labor clearing the brush around the old apple trees, pruning them, etc.). So what do I claim as the value of my donation?

If they want Wild Blackberry Jam again cost of sugar is 25-30 cents per jar, berries are "free" but I get $5/pint when I sell the berries at market (and charge $1 more for jam that takes a pint to make a pint to make up for the sugar and the jar, that doesn't even cover electricity and some people think $6 is too much). So would the blackberry jam be worth more as a donation than the grape, since I can sell blackberries and I'm assuming no one would buy wild grapes so they're "worthless" at market?

Might be easier just to let my aunt who contacted me pay for them and she can take the deduction off her personal income tax?

Oh, Randy, didn't mean to ignore you. What you said about the cost to produce being a business expense already made sense, I would only be "donating" my potential/future profit, not the entire $6/jar.

And the food bank won't take "homemade" items (not that I would donate jams I could sell over the winter or at market next year - I can't afford to at this point) or fresh produce. Wish they'd take the produce - I have way too many peppers and tomatoes that might not be in good enough shape to can (and have had many this year that weren't perfect enough to sell and I didn't get around to canning so they rotted on my counter).

It would be easier to go the aunt route.

My food bank is glad to take fresh produce. Do you have a soup kitchen that might take some? Or take it to a older folks housing, not nursing home??

I'm not sure what you would declare since you have 'free' items, most likely the actual costs (money out of your pocket). You will be better taking it off of your Schedule C, than itemizing as a charitable donation.

Marla

Randy - I will email you - need your help figuring donations out.

I decided to let my aunt buy the things I am allowed to sell (from our own fruit) so she can take the deduction. But the organizer wants some other things from my own "private stock", things like lemon ginger marmalade so I need to figure out how much ingredients cost me and then how/if to take that as a deduction, or let them reimburse me for ingredients - she said Society could pay since most items are being donated (? Does that mean I should donate? I already counted on donating quince preserves, quince paste (candy), and pickled peppers and green tomatoes).

She did promise to put placards on the table with farm name and type of spread (thought it best to have everything laid out for portion control, only buying 1 jar of each), and also asked me to give a 30-min talk some time this winter on history of preserving or "preserving in the 19th century" or something (not paid, but good advertising for me!), since she was so impressed by my talk of invention of canning, "marmalade" vs membrillo, etc. - thought I must have "went to school for it", I said no, it was just a hobby that ended up turning into a business 2 months ago when my produce wasn't selling.