Want Lower Taxes? Goodwill Can Help!
Deduct Your Donations Every Year!
If you are a taxpayer who itemizes deductions on federal tax returns (uses the long form), you are entitled to claim a charitable deduction for all financial and material donations to Goodwill Industries. According to the Pension Protection Act of 2006, you may claim a deduction only for items that are in good or better condition.
The U.S. Internal Revenue Service requires donors to value their items and says you may deduct the fair market value of each item. To help guide you, Goodwill provides you with price ranges for items sold in our stores. 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.
Non-Cash Charitable Donations
- If the total claimed value of your donations for one year is under $500, we suggest that you, as the donor, prepare an itemized list of the items, which Goodwill will verify by providing 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 contributed. 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.
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If your non-cash gifts to Goodwill have a total claimed value for the year of $500, up to $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 Contribution), complete Section A only, and file the form with the IRS. No specific action is required by Goodwill. Goodwill does not need to sign the form.
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If your non-cash gifts to Goodwill have a total claimed value at one time of $5,000 or more, the items must be appraised by an independent appraiser prior to the donation. You must notify Goodwill of your intention to claim a value over $5,000. Goodwill is then required to track the sale of your donation and report it to the IRS. For Goodwill 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, complete Sections A & B, and file the form with the IRS. Goodwill 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.
IRS Form 8283, and its companion Instruction Publication, are available online from the IRS Web Page, http://www.irs.gov.
If you are donating a vehicle of any type (car, boat, RV, etc.), there are tax laws that specifically deal with your donation. Please contact Goodwill at (318) 869-2575 for further information.
