Guide to Tax Deductions for Donated Goods
Every year, we get questions from our donors about how to claim income tax deductions on what they have donated to us. Here are some of the guidelines we can offer.
If you have a Goodwill card and would like to look up your donation records, please click here.
Assessing the Value of Your Donations
Federal law permits Goodwill donors to claim tax deductions for many financial contributions and for donated clothing and household goods that are in “good, used condition or better.” Because market values are based on items in good condition and may vary from one region to another, Goodwill Industries, Inc., does not maintain guidelines for the estimated value of donated items. To assess “fair market value” for your donations, consult a local tax advisor, who should be familiar with market values in this region.
Goodwill provides receipts as validation for contributions on the date of the donation. The receipt serves as confirmation of your donation but does not include a dollar amount. (At this time, Goodwill does not retain copies of receipts. You, as the donor, will receive the original).
The U.S. Internal Revenue Service (IRS) does not permit Goodwill to establish or confirm the value of donated goods. Rather, the IRS requires donors to value their items.
Goodwill Industries International has compiled a suggested list with price ranges for items commonly sold in Goodwill stores. Assume the items are in good condition, and remember — prices are only estimated values. A link to this Valuation Guide is below, as well as links to pertinent IRS publications. We hope these are of help, but please remember, your best source for information is your tax professional.
At Goodwill Industries, we want people to give as much thought to where they donate items as they would to where they donate their money. Donors should give to charities they know and trust, and which will make the most of their donations.
We thank you for supporting Goodwill’s mission.
Goodwill Industries recommends consulting with professional financial advisors when including material or monetary donations on your taxes.