No. Parents (and family child care providers) can only deduct charitable contributions when they donate items (or give cash) to a charitable organization.
Family child care is not a charitable organization. You may feel like you are running a charity, but you are actually running a business!
When parents do give you used toys or furniture or other items for your business you can deduct them as a business expense. Use the fair market value of the item at the time it was given to you. In other words, estimate what a stranger would pay for the item.
If you make a charitable contribution to your church or Goodwill or the Salvation Army, you can deduct this as a personal charitable deduction, but not a business deduction. See my article, “Are Charitable Contributions Deductible as a Business Expense?”
Tom Copeland – www.tomcopelandblog.com