Q:  How do we record donated fabric that is not usable?
Example: A volunteer who had animals that damaged the fabric making it unusable. 

A:  UNusable Fabric:  If the fabric was originally good fabric that had been donated to the chapter which a volunteer kept at their home and who’s pets damaged the fabric, the original donor has already received a donation receipt (rightly so), there is not much we can do.  If you received the fabric in this current reporting period, report the donation as you normally would, and then make a note on the Chapter Report that the fabric was damaged AFTER receipt so we know what is happening, but we still need to claim the original donated value for IRS purposes IF the fabric was usable at the time of donation.  If you received and reported the fabric on a previous report, just advise us of the loss.

PLEASE NOTE:  If someone is trying to donate UNusable fabric, DON’T accept it!  We certainly don’t want to issue a tax deductable receipt for items that we cannot use. Its ok to say "No thank you."