Turning Clutter into Cash

It may seem like a lot of extra work, but sorting the items you dispose of while uncluttering can translate into money in your pocket. You might be thinking, "It's hard enough to create that trash pile in the first place. Now I have to sort it, too?" What value do you place on an hour of your time? You could make that much per hour or more by sorting the trash.

Garage Sales

I'm not suggesting you should have a garage sale, but if you feel so inclined, go for it. As a professional organizer, I tend not to suggest using the garage sale as a means to recover money from your unwanted items. The main reason for this is the extensive amount of labor involved, especially when you are involving your organizer at his/her hourly rate. It ends up not paying off that well once you add up your time, your helpers' time, and your organizer's time. If the quality and quantity of your items warrants an estate sale, that is a different matter all together. There are professional organizers who specialize in organizing estate sales. Find the right organizer for the job at the National Association of Professional Organizers web site.

Charitable Donations

For those of us who typically itemize deductions on our tax return, a good blend of time investment and money return is in making charitable donations. There are people in need of your things and there are people who are interested in buying your things at charity retail shops.

In the past, the problem with making such noncash donations was determining the value of each item in a way that made the IRS happy without visiting thrift shops to find items like yours to make a note of the price. That process required a hefty time investment, ultimately not seeming worth the tax savings. Now we have a great tool that makes this fast and easy. It's called "It's Deductible," an inexpensive computer program from Intuit.

You will have to sort through your things and note how many of each item you have and the condition each is in. But with a few hours work you will see your tax savings add up quickly. People who skip the research at the thrift store and estimate the value for, say, a box of clothes, tend to find out they are underestimating the value by a factor of two or more.

So make an appointment with yourself when your organizing project is over. Go through your items, pulling out any actual trash, recyclables, or items beyond repair. Just check your donation items off "It's Deductible's" checklist—the program will show you an estimate of how much money you'll save when you file your taxes. It's like getting paid at the end of your organizing project.

It can be a lot of work to choose a charity if you don't already have one in mind. It may be important to you to choose a charity based on the type of work they do for the community versus what type of items they accept for donation. Certain charities accept certain types of items (for example, clothing but not household items) at different times of year. You may have to wait to donate winter clothes if it is currently spring. The easiest way to donate is to bring everything all at once to a Goodwill Foundation store, found throughout the United States. The drawback to this approach is that some of your items, even though you can take a deduction for them, may end up in the trash after all. The more work you do to find appropriate homes for your items, the more likely they will end up in the hands of a needy party. Determine what is important to you. Is it worth a little extra work to keep your things out of the landfill? You must decide what is right for you.

Finally, don't forget to actually drop off your donations along with a copy of your itemization, printed from It's Deductible, for the charity's records.

If itemizing your donations still seems like too much extra work, keep in mind that it is an excellent task for a professional organizer. You can usually receive a great monetary benefit even after you've subtracted the organizer's fees from your tax savings. Plus, the organizer will not require your assistance on this part of the organizing process, freeing you up to do the things you'd rather do. I have a knowledge of local charities and can help you choose the right ones for you. I will also deliver your donations to the charities if you desire.

You may have items that could return more money to your pocket than by donation. Again, you'll need to weigh their potential value versus the time you want to invest in disposing of them.

Internet Auctions

If you have moderate computer and Internet skills you can sell items on Ebay or other auction sites. It is helpful to have a digital camera, but a film camera will work—just don't forget to calculate the expense of buying and developing film and having your photos digitized (you can pay to have a Photo CD made at the time of developing, or you can scan them in yourself if you have a scanner). Basic photography skills will be required to get a representative photo that will entice buyers to bid. Don't forget you'll be making trips to the post office to send off packages.

Start by searching the auction site for items like yours to determine if the profit you will make will be worth the effort involved.

Consignment

Clothing, especially designer clothing, and furniture in good condition may be best disposed of through a consignment shop. Again, more effort can be required to consign than to donate. But the monetary rewards can be great.

It is easier to find a consignor to take women's and children's clothing than men's clothing. And everything must be in very good condition and reasonably in style.

Furniture that is high quality and in excellent condition will also be a better candidate for consignment than pieces that are less well made and only in good or fair condition.

Check your local Yellow Pages to find consignment shops near you. Call to make an appointment—they usually don't accept walk-ins.

Again, it takes some legwork to determine what will bring adequate money through consignment, and you must decide if the work is worth the monetary reward.

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