Since a while I have been having contact with the Yellowstone to Yukon Conservation Initiative (www.y2y.net). We are building up quite an interesting relationship, where I get information and cooperation from them that is invaluable for my "Project Canada" (a freelance project to raise awareness of the natural values in the Rockies), and in return I regularly provide them with photos for certain publications (like their new membership material).
I do not get paid for the use of my images, but that is perfectly alright by me, as long as they do not use them for commercial purposes. It is a way for me to support their great work, and get some free publicity as well.
My question however is if there is a way in which 'donating' photos for such purposes can be used to deduct taxes. Anyone any ideas?
Arthur - if the organization is registered as a not-for-profit 501c(3) and you keep accurate records and can assign plausible monetary value to the way the images are used then yes - you can claim these as charitable donations (at least in the US).
On the other hand note that many not-for-profit organizations (e.g. the Sierra Club) do pay for this kind of use and in that sense freelance photographers helping their cause are no different from their executives, career activists etc.
Guy
Posted by Ron Niebrugge on June 30, 2006 at 12:02 PM
No you can't deduct fair market value, only your actutal cost of the materials donated. So if you put the image on a CD - you can duduct the 8 cents the CD cost, no more.
Posted by Ron Niebrugge on June 30, 2006 at 12:15 PM
To elaborate, this is why I usually opt to donate cash instead of images.
Guy makes an excellent point in his second paragraph. Many of the best organizations pay, and sometimes pay well for the use of photos because they do recognize the value of photography and photographers.
Posted by Ron Niebrugge on June 30, 2006 at 12:42 PM
You are welcome Guy – that could have been ugly!
There has been legislation proposed in recent years to allow market value deductions, but they have not made it through Congress. At initial glance, it seems like good legislation, but I can understand why it hasn’t past. For one, the IRS is concerned about abuse. Suddenly anyone with a camera could start donating images and taking large “market value” deductions. In addition, there was never any income tax paid on the creation of the value, so taking the deduction would be getting somewhat of a double benefit. I’m sure the IRS would support the deduction if we were paying income tax on the created market value in the first place, but that would be a giant step backwards for artists.
I also doubt they could come up with a definitve fair market scale for art. Values vary greatly by any number of factor, many of which are subjective and amorphous.
Here's something to consider. Even if I donate to a cause I have a vested interest in--like in your case--I have begun telling non-profits that I'm happy to donate the use of the photos--and I also send a delivery memo detailing that it's a one-time use--but I must charge $25/photo to cover my time sizing and emailing images, etc. That way at least you recoup for your time involved--remember, even the kind folks at y2y are getting paid. That let's them know as well that you value your time in the photography business. Just something to think about, Randy
Discussion
7 repliesSince a while I have been having contact with the Yellowstone to Yukon Conservation Initiative (www.y2y.net). We are building up quite an interesting relationship, where I get information and cooperation from them that is invaluable for my "Project Canada" (a freelance project to raise awareness of the natural values in the Rockies), and in return I regularly provide them with photos for certain publications (like their new membership material).
I do not get paid for the use of my images, but that is perfectly alright by me, as long as they do not use them for commercial purposes. It is a way for me to support their great work, and get some free publicity as well.
My question however is if there is a way in which 'donating' photos for such purposes can be used to deduct taxes. Anyone any ideas?
Cheers,
On the other hand note that many not-for-profit organizations (e.g. the Sierra Club) do pay for this kind of use and in that sense freelance photographers helping their cause are no different from their executives, career activists etc.
Guy
Guy makes an excellent point in his second paragraph. Many of the best organizations pay, and sometimes pay well for the use of photos because they do recognize the value of photography and photographers.
Guy
There has been legislation proposed in recent years to allow market value deductions, but they have not made it through Congress. At initial glance, it seems like good legislation, but I can understand why it hasn’t past. For one, the IRS is concerned about abuse. Suddenly anyone with a camera could start donating images and taking large “market value” deductions. In addition, there was never any income tax paid on the creation of the value, so taking the deduction would be getting somewhat of a double benefit. I’m sure the IRS would support the deduction if we were paying income tax on the created market value in the first place, but that would be a giant step backwards for artists.
Guy
Here's something to consider. Even if I donate to a cause I have a vested interest in--like in your case--I have begun telling non-profits that I'm happy to donate the use of the photos--and I also send a delivery memo detailing that it's a one-time use--but I must charge $25/photo to cover my time sizing and emailing images, etc. That way at least you recoup for your time involved--remember, even the kind folks at y2y are getting paid. That let's them know as well that you value your time in the photography business. Just something to think about, Randy