It wasn't too long ago that owning a cell phone was considered something of a status symbol, because the cost to purchase one and join a service plan was beyond the means of many people. Portable phones were guarded as though they were made of gold, kept in protective cases away from any possible threat of damage or theft. Despite the high prices, unreliable connections and large areas where service did not exist, a cell phone meant you had achieved a measure of success.
Today, rapidly changing technology, widespread use all around the world and very cheap prices have made cell phones disposable. Everyone wants the latest phone with the most bells and whistles. Phones become "obsolete" after a few years, replaced by the latest technology. The question then becomes: what do you do with the old phones? The answer: donate them to charity.
Old cell phones can still make and receive calls. While they still have value, people are always looking to upgrade. If you are getting a new phone and figured you will just toss the old one in the trash, think again. Cell phones can be refurbished and put back into service. Donating your old phone to a charity can help the less fortunate. Plus, a donation to a 501(c)(3) approved charity can result in a tax deduction.
The IRS has established certain rules for the tax deduction of a donated cell phone to a qualified charity or religious organization. You will need to determine fair market value when donating. The standard IRS formula for fair market value of donated cell phones is as follows: Take the original price you paid for the phone and deduct 20 percent for each year you have owned it. So if you donate a phone after 2 years, you can claim 60 percent of the original purchase price as the fair value. While you probably won't get rich claiming a deduction for one or more cell phones on your tax return, the real benefit is knowing that your donation will help another person in need.