Reap The Financial Benefits of Home Renovation

Dana Brewer, CFP®
May 15, 2025 8:00:00 AM

There are so many decisions to make when contemplating a home renovation. One frequently overlooked factor is deciding how you will dispose of the items you no longer need. Will they go to the landfill, or can they be repurposed? Items like cabinets, sinks, tubs, doors, windows, appliances and furniture can have a second (or third) life. There are a variety of options available for donating and repurposing building materials and furniture to nonprofit organizations.

Integrating a Home Renovation into Your Financial Plan

Most taxpayers file their individual tax returns claiming a standard deduction. You may qualify for a tax benefit when the total amount of your charitable donations is large enough to exceed the standard deduction threshold. Donating items that can be repurposed and lumping your charitable giving into one year may help you cross that threshold and qualify for some tax benefits. Your tax or financial advisor can help you understand how much you need to cross that threshold. 

Does Your Renovation Include Demolition?

With the rising cost of new home construction, some homeowners opt for a major renovation to make their current house feel like new. If your renovation requires demolition, deconstruction may be an option to consider. Deconstruction is a sustainable approach that prioritizes salvaging and reusing materials, rather than sending them to landfills. It minimizes the environmental impact by diverting waste and conserving resources. 

Companies like Green Donation Consultants advocate for deconstruction as the green alternative to demolition. They can help you decide between demolition and deconstruction and devise a plan to accomplish the renovation of your home while helping others, saving money and positively impacting the environment. Green Donation does charge a fee for their services. If you aren’t sure if your renovation would qualify, you can request a free inspection. 

Find an Organization to accept Your donation

There are several local non-profit organizations that accept large household items to be repurposed.

Habitat for Humanity Re-Stores

Habitat for Humanity Re-Stores is a home improvement store and donation center selling new and gently used furniture, appliances, home goods, building materials and more. We are lucky enough to have stores in the Twin Cities area. ReStores accept drop-off donations of new and gently used items based on their Donation Guidelines. They also accept unused building materials. In addition to donating items, you can also buy items to be repurposed in your home. 

Bridging

If you are updating furniture with your remodel, consider giving your old furniture to our local charity Bridging. Since 1987, Bridging has made a monumental impact in the lives of local families transitioning to housing stability, serving nearly 115,000 households (more than 345,000 individuals). Bridging’s staff and volunteers continue to bring hope and stability to more than 13,000 people each year while reducing landfill space by more than 10 million pounds annually.

Bridging now has 3 locations in the Twin Cities area (Roseville, Plymouth and Bloomington), and all the locations accept drop-off items. Check their website for a list of items that are accepted for donation. If you are unable to bring your items to Bridging and you live in the Twin Cities metro area, you can schedule a curbside/garage pickup (this is a fee-based service). 

If your item is not accepted by Bridging, or you want to explore other Twin Cities charities accepting donations, Bridging has created a resource list to help you find a suitable organization.

Download Bridging's Resource List

Personal Experience: The Rewards of Repurposing

Having recently completed a home renovation project myself, I have seen firsthand how much waste a remodeling project can create. Fortunately, I was able to find homes for all my kitchen cabinets as well as my furniture. The opportunity to be a good steward of the environment while helping others is personally rewarding, and the potential tax advantage of repurposing only adds to the benefit. 

Investment Advisory services offered through Birchwood Financial Partners, Inc. an SEC Registered Investment Advisor.

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