Your tax-deductible donation of goods play a vital role in the ability of Goodwill to fulfill its mission of providing employment and support programs for people facing barriers to employment. The funds obtained from the sale of donations allow us to continue to serve the community in need.

In general, taxpayers who itemize are entitled to deduct the value of goods donated to qualified religious, charitable, educational, governmental or other philanthropic organizations. IRS regulations require taxpayers to place a value on items donated. 

The rules governing valuation, substantiation, record keeping and reporting can be quite complex, however. We therefore recommend downloading here IRS Publication 526 and IRS Publication 561 from the IRS website and/or consulting a tax advisor if your situation so warrants.

To assist in understanding the general rules and guidelines for claiming deductions for donated goods, answers to some of the more commonly asked questions are provided below.

In addition, you may reference our "Guide to Donating" brochure. Please keep in mind that this is merely a guideline to assist you, the donor, in determining the values for your items. You may view or download the brochure by clicking here.

 

 

  FAQ's

Can Goodwill place a value on my non-cash charitable contribution for me? No. The IRS requires the donor to assign values. Some acceptable methods are estimated resale value replacement cost or qualified appraisal. Regardless of the method used, consideration should be given to the age, condition, quality, style and use of the donated articles.

What documentation should I obtain at the time of my donation? Where practical, a receipt from the donee should be obtained specifying the name of the organization, date and location of the contribution as well as a reasonably detailed description of the donated property. In many cases, the donor will request valuation assistance from a tax advisor at a later date so item descriptions should be as specific as possible (particularly with respect to quality, age and condition). Goodwill Industries of Western Connecticut provides all donors with donation receipts at the time of donation.

I lost my donation receipt. Can Goodwill give me another copy? Unfortunately, Goodwill cannot give duplicate copies of donation receipts. With the large volume of donations we take in we are simply unable to keep records. Please safeguard your receipts, as this is the only copy available.

What forms will I have to file with my tax return? If the total deduction for non-cash charitable contributions is $500 or less, you may claim the entire amount on Schedule A. If over $500, you will need to fill out the applicable sections of Form 8283 to support your Schedule A amount.

Does the new rule for substantiating single contributions of $250 or more apply to non-cash contributions as well? Yes. Fortunately, Goodwill donation receipts meet all the additional documentation requirements.