We are nearing the end of the tax year and it’s time for your last minute charitable donations.  If you are planning on taking a charitable deduction via Schedule A and wanting to donate property “non-cash” items, here are the rules:

  1.  The organization receiving your donation must be qualified:  religious, charitable, educational, scientific, literary, or prevention of cruelty to kids/animals.
  2.  For all non-cash contributions you need to keep documentation regarding the donation detailing:
    1. name of organization
    2. date/location of contribution
    3. description of property
  3. Non-Cash donations fall under 4 categories:
    1. under $250:  all the above info and how you arrived at the value
    2. over $250 and less than $500:  all the above with receipt from organization
    3. over $500 and less than $5000:  all the above + receipt from org + records that include how your acquired property, when and the cost
    4. over $5000:  everything included in items 1-3 above + qualified written appraisal of property.

Bottom line, even if you drop off goods at Goodwill you will need a receipt, description and valuation.  The IRS has disqualified charitable donations because of lack of taxpayer documentation/records so make sure you can substantiate all your donations.

NOTE:  Take a picture when you drop off goods and put that in your files as another record.

Request Follow Up

This field is for validation purposes and should be left unchanged.

James A. Daniel

James A. Daniel - Financial Planner


How can a fee-only fiduciary Certified Financial Planner™ help YOU?

As a fee-only Financial Planning firm we assist you in answering life’s challenging financial questions and help guide you to make smart financial decisions.

Leave A Comment