If you itemize deductions on your federal tax return, you are entitled to claim a charitable deduction for your Goodwill donations. 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. The U.S. Internal Revenue Service requires donors to value their items and says you may deduct the fair market value of each item. Fair market value is the price a willing buyer would pay for them. Prices are only estimated values and assume that the items are in good condition. New and/or high quality specialty items may garner higher values.
To assess "fair market value" for your donations:
Consult a local tax advisor who should be familiar with market values in your region.
Review the following tax guides available from the IRS at www.irs.gov.
Publication 561 - Determining the Value of Donated Property:
Defines "fair market value" and helps donors and appraisers determine the value of 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.
Publication 526 - Charitable Contributions:
Explains which organizations are qualified to receive deductible charitable contributions, the types of contributions you can deduct, how much you can deduct, what records to keep, and how to report charitable contributions.
Non-Cash Charitable Donations Guidelines:
If the total value of your donations for one year is under $500, we suggest that you, as the donor, prepare an itemized list of items donated. Easter Seals Goodwill ND, Inc. will provide you with a written receipt at the time of your donation. You, as the donor, are responsible for obtaining the receipt and maintaining all tax records, as well as assigning values to the goods donated. Your itemized list might include a listing of the items donated, a general description of each item, an assigned value for each item, and the date of the donation.
If you non-cash donations have a total claimed value for the year between $500 and $5,000, we suggest that you, as the donor, prepare an itemized list as described above. You should obtain IRS Form 8283 - Non-cash Charitable Contributions, complete Section A only, and file the form with the IRS. No specific action is required by Easter Seals Goodwill ND, Inc. Easter Seals Goodwill ND, Inc. does not need to sign the form.
If you non-cash donations to Easter Seals Goodwill ND, Inc. have a total claimed value at one time of more than $5,000, the items must be appraised by an independent appraiser prior to the donation. You must notify Easter Seals Goodwill ND, Inc. of your intention to claim a value of over $5,000. Easter Seals Goodwill ND, Inc. is then required to track the sale of your donation and report it to the IRS. For Easter Seals Goodwill ND, Inc. to be able to do this, you as the donor, are obligated to prepare an itemized list as described in (1,) above, obtain IRS Form 8283, completed section B and file the form with the IRS. Easter Seals Goodwill ND, Inc. must sign the Form 8283 that you provide before you file it with the IRS. The qualified appraisal (within 60 days of the goods donated) should be in the donor's possession when requesting a signature from Easter Seals Goodwill ND, Inc.