Donation Valuation Guide

Are you looking for a donation valuation guide? It's definitely a good idea to keep up with the monetary value of the items you donate to charity throughout the year so you'll have an easy time preparing the charitable donations line item on your tax return, assuming that you file a form 1040 and itemize your deduction

Donate Unwanted Items to Charity

When you donate goods to a charitable organization, it's important for you to get a receipt for your gift. Under Internal Revenue Service (IRS) rules, in order for donors to be able to write off donations on their taxes, they must have a written acknowledgement provided by the charitable entity receiving the fit that includes the organization's name and the date the gift was made, and a description of the items that were donated.

The charitable organization is not required to place a value on the non-cash goods received from donors. Rather, it is the responsibility of the individual or organization making the contribution to assign a reasonable and accurate value to the donated items.

The Salvation Army provides an online donation valuation guide that can be beneficial when determining an appropriate value for donated items. Goodwill Industries also offers an online donation value chart that can be used for the same purpose.

When you review these online valuation guide examples, you will notice that there is a range of values specified for each type of item. When assigning a specific dollar value to your gifts, you should use these categories as a general guide, taking into consideration the age, condition, original cost, and resale value of each item. New items in perfect conditions can be valued at or near the high end of the range, while older items showing signs of wear and tear would be valued lower.

Specific IRS requirements for charitable donations are explained in detail in Publication 1771, Charitable Contributions: Substantiation and Disclosure Requirements. The full .pdf file is available for download at no cost.

When you donate a vehicle to a qualified charitable organization, the value that you are able to claim on your taxes as a charitable gift depends on what the gift recipient does with the item. In most cases, if the vehicle is sold, the donor will be able to write off the selling price on his or her tax return, regardless of its fair market value. However, if the charity will use the vehicle for its own purposes, donors are typically allowed to deduct its fair market value.

There are very specific documentation and record keeping requirements that apply to vehicle donations. If you donate an automobile, boat, or aircraft to a charitable organization, you'll need to consult A Donor's Guide to Vehicle Donations (IRS Publication 4303) to verify the requirements that apply to your gift.

It's in your best interest to review this publication prior making your gift so you can be certain that the transaction is handled in a manner that will allow you to write off the gift on your taxes. You can download a free .pdf file of the publication whenever you are ready to review the guidelines.

When making any decisions that may affect your tax liability, it's important to consult your Certified Public Accountant (CPA) or tax preparation professional. If you're planning to make a sizeable charitable donation, it's in your best interest to seek advice from a qualified tax advisor before doing so. Doing so is the best way to be certain that you are in compliance with federal tax requirements and that you will be able to enjoy the greatest possible tax benefits from your generosity.

• Tracking Charitable Donations for Taxes
• Fundraising Strategic Plan
• Request for Donation Letters

• List of Nonprofit Organizations
• Furniture Donation Pick Up
• Sample Letters Asking for Donations
• Samples of Non Profit Fundraising Letters
• Samples of Thank You Letter for Donations