It seems as though many people are interested in getting out of debt and generating extra income these days. It’s no real surprise. With concern over the economy, people are looking for ways to improve their financial situations — or at least prevent them from getting too much worse. One of the ways you can make a little extra money is to sell your stuff.

Selling what you don’t need

Go through your home and look for items that you haven’t used in years. We’ve been trying to get rid of stuff we don’t need for quite some time. It’s amazing the useless stuff that accumulates. It is equally surprising when you realize that it’s all in good shape because you didn’t use much in the first place. Figure out what you could sell, then consider these options:

1. Craigslist offers a place for you to connect with local buyers. And, unlike the Classifieds section of the newspaper, Craigslist is free. This is a great place for larger items that are hard to ship.
2. eBay is a tried and true method of selling. However, you should only put up your best items, and remember to consider the cost of shipping as well.
3. Amazon Marketplace offers a great opportunity for things like music, movies and books. You can sell your used stuff at Amazon and get a little cash. (Sign up for the affiliate program while you are at it and monetize your blog).
4. Garage sales are a lot of work, but they can be helpful in moving all that stuff you couldn’t get rid of online. You will have to offer deep discounts, though.
5. Freecycle can be a place to go if all else fails. If you can’t sell your items, you can give them away on Freecycle. Maybe someone else could use what you have. And you might find something that you actually need.

In the end, there is always donation. Your local thrift store can accept items in good condition and offer you a receipt for their value. This way you can at least get a tax deduction for the stuff that you don’t need anymore.

image source: eBay Web site

Right now, with the economy the way it is, many people have been cutting back on charitable giving. I know that even though I continue to give the same amount to my church, and to the local food bank, I have been wondering whether the money I give to other causes is really in keeping with my goals. And, with things getting a little tighter, it is no longer feasible for me to continue sending a $25 check to everyone who asks — every time they ask.

As a result of my confusion over what to do in terms of charitable giving this year, I was rather interested when I received a press release from UC Berkeley describing a new project called Donation Dashboard. Here is what the press release points out about how Donation Dashboard works:

The site, Donation Dashboard, quizzes users about their interest in a small set of organizations and then recommends a customized giving portfolio—one that’s scaled to suit each user’s available funds.

I really like the idea of targeted giving, and I like the idea of looking for charities and organizations that fit your values. And I like the thought of putting together a donation portfolio. It makes the whole thing more organized, and helps you better keep track of what you have done in terms of donation.

In the current economy, it is important to make sure that you are efficiently using every dollar possible — and that includes the way you handle charitable giving.

Image source: Donation Dashboard

Now is the perfect time to get your stuff together for taxes. Tax preparation is something you should be doing right now, so that you are ready to go when your tax return is due. This is the time of year I start getting my stuff together for the accountant. And one of the things I do is itemize my deductions.

When to itemize your deductions

You want to itemize your deductions on Schedule A of Form 1040 if your deductions add up to more than the standard deduction that is offered. Mine do. Schedule A  includes deductions for your mortgage interest, as well as charity deductions, among other things. These are the main Schedule A deductions on most people’s taxes. The mortgage interest is pretty straightforward: Your lender will send you a statement.

The charity donations may not be as easy to figure out. This is where a Web site called CharityDeductions.com may be helpful. This site helps you figure out the fair market value of your items based on:

• Brand
• Current condition
• Age (in some cases)
• State you live in
• Other information

Keeping track of information on charity donations is now required, so if you are unsure of the fair market value, you can run an analysis. CharityDeductions.com gave me a special test code to put together my donation list to the local thrift store from back in May (I kept a record because you’re supposed to now).

When I donated, I just sort of guessed what the items were worth, and the thrift store just wrote down what I guessed. My guess was $196. Looks like I was off by $61. Of course, that’s not a huge deal to me, since it is more important to give than to worry about getting the tax deduction. But still, it sort of makes one wonder how many other taxpayers are underestimating the fair market value of their donations.

How CharityDeductions.com works for tax preparation

The idea is that you pay $19.95 per year to create reports of charity donations — including cash donations. Each time you make a donation, you are supposed to record it, and then you can print out a report that you can keep on file in case of audit, or give to your tax preparer as backup for your tax return deductions.

The service I find most helpful, though, is the fair market value report for donated goods. It helps you pinpoint what things are worth. However, you can look that information up on your own (but it is time consuming). If you donate several times a year to a thrift store or some other type of organization that accepts goods, this might be worth your while — especially if the amount you under-report equals more than $20 each year.

If you only donate goods once a year or so, however, you might be better off with guessing the fair market value. And cash donations are easy to record in personal finance software. I usually print off a report from my personal finance software to turn in to my accountant. But if you do your own taxes, or if you donate a lot of goods (including food to the food bank), you might find CharityDeductions.com helpful.

On Veterans’ Day, it is fitting that we take a moment to pause and thank the veterans that we know. I have friends and family members that are veterans, and I am grateful to them for their sacrifices. This is why one of my chosen charities focuses on helping disabled and homeless veterans.

But what’s really cool is that there are people out there trying to make a BIG difference in the lives of veterans. The Little Caesar’s Veterans Program was created to help veterans — especially disabled veterans — find success in the civilian world. Here is what a press release says about the program:

The program helps military men and women successfully transition to civilian life, as well as create opportunities for those who seek new careers. (And, as sources of start-up capital are harder and harder to find during this economic crisis, this innovative solution is more vital than ever.)

Right now, there are plenty of veterans who need our help and support. And I think that it is only fair that we offer it to them. After all, they have given so much for us.

image credit: U.S. government/public domain

Earlier today, I wrote a post about how encouraging educational efforts can aid in the fight against poverty. But there are plenty of other personal finance blogs out there with great Blog Action Day posts addressing the issue of poverty.

Here is a sampling of some of the other personal finance blogs involved in Blog Action Day:

• That One Caveman: Educating the future
  
• Free From Broke: Causes of poverty
  
• Moolanomy: War on poverty
• Get Rich Slowly: What you can do
• Free Money Finance: You can help
• My Investing Blog: More on poverty
• Girls Just Wanna Have Funds: Women and poverty
• Cash Money Life: Poverty in America and abroad
• Wisebread: Poverty fighting superheroes
• Blueprint for Financial Prosperity: Food banks
• My Two Dollars: Conversation about poverty
• Green Panda Treehouse: Microfinancing with Kiva
• Gather Little By Little: Poverty is our responsibility
• Bible Money Matters: More on microloans
• Personal Finance Corner: Help others help themselves

Also, there are other b5 Media folks participating. Here are some of the blogs on b5 joining Blog Action Day efforts:

• Just Make Money Online 
• Help My Hurt
• Filipina Soul
• Pink Ribbon Review
• Breastfeeding 1-2-3
• Franchise Pick
• Medium Dreams
• Simply Thrifty
• Leadership Turn
• Tree Hugging Family
• Solo Mother

I have long believed that charitable giving is essential to a healthy and well-rounded personal finance situation. And with this year’s Blog Action Day focus on poverty, charitably giving is even more on my mind.

One thing that I think can help fight poverty is providing opportunities for education. Education can help those in third-world countries (and our own) gain the skills and knowledge they need to better their circumstances and their communities. One of the ways you can fight poverty is to donate to organizations that make the education of the underprivileged their goal.

One of the three programs I donate to  regularly is the Perpetual Education Fund set up by the LDS Church. This is a program that provides low-cost educational loans to those in poverty. The point is to encourage those in third-world countries to 1) Get an education so they can take care of themselves and 2) Become contributing members of their communities so that they can take care of others as well.

I like the idea of helping people help themselves. It is one of the most effective ways to fight poverty, since it encourages those helped to continue the good work, with poverty-fighting efforts rippling outward.

What causes do you donate to in order to help fight poverty?

Miki Saxon, over at Leadership Turn, brought my attention to AnySoldier.com.

This is a site that allows you to make (tax deductible) contributions to purchase care packages for our soldiers. They are missing a lot of essentials as they fight in Iraq and Afghanistan. You may not agree with the war, but that’s no reason to turn away from the brave men and women who serve this country.

In light of the fact that good personal finances includes donating to worthy causes, here is something to consider.