IRS Donation Guidelines
If you itemize deductions on your federal tax return, you may be entitled to claim a charitable deduction for your Goodwill donations.
Understanding "Fair market Value"
According to the Internal Revenue Service (IRS), a taxpayer can deduct the fair market value of clothing, household goods, used furniture, shoes, books, and so forth.
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What is Fair Market Value? This is the price a willing buyer would pay for the items. Value usually depends on the condition of the item.
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The Legal Rule: By law, a charity cannot tell you what your donated items are worth. This is something you must do yourself.
How to Assess the Value of Your Donations
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Consult a local tax advisor who should be familiar with market values in your region.
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Review IRS Tax Guides: The Determining the Value of Donated Property guide defines “fair market value” and helps donors and appraisers determine the value of the property given to qualified organizations. It also explains what kind of information you must have to support the charitable contribution deduction you claim on your return.
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Use the Goodwill Value Guide: To help you determine your donation's fair market value, Goodwill is happy to provide a Value Guide that offers average prices in our stores for items in good condition.
Rules for High-Value Donations (Over $5,000)
If a donor is claiming over $5,000 in contribution value, you must complete a specific section on your tax documents:
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Required Form: Section B, Part IV of Internal Revenue Service (IRS) Form 8283, labeled “Donate Acknowledgement.”
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Where to Find it: The form and instructions are available on the IRS site.
Your Donation Receipt
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Goodwill will provide a receipt as substantiation for your contributions in good used condition.
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Important Timing: Receipts are issued only on the donation date.
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How to Get One: You may request a donation receipt when dropping off donations at one of our attended donation centers.
