Non-Cash Contributions

• Posted on April 24, 2008
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Downloadable Forms: Noncash Contribution Statement IRS Form 8283 (Gifts over $5,000)

When you give away household items like clothing, appliances and other goods to a qualified charity, your generosity can add up to a tax write-off if you itemize your deductions. The amount of your deduction is generally the donated property's "fair market value" (i.e., the price similar property would sell for in the open market).

Unfortunately, one of the most difficult problems connected with noncash donations is determining their FMV. In fact, when you give away property of high value, the job of determining worth is best left in the hands of a professional appraiser. Or, when you donate property that has increased in value, special tax rules apply and you should consult with this office before you make your donation.

The guidelines offered below are provided as aids for setting value on the most common types of noncash donations (miscellaneous personal items) that have decreased in value since the time they were first acquired:

• Used Clothing and Household Items - No deduction is allowed unless the clothing or household item is in good used condition or better. The IRS has been given authority to deny a deduction for any item with minimal monetary value, such as used socks or undergarments.
  
  o Used Clothing: The IRS provides no set formula for valuing clothing items. However, keep in mind that the fair market value of used clothing and other personal items is usually much less than what you paid for them. A visit to a local thrift shop may help give you an idea of current selling prices for items like yours.
  
  o Household Goods: The value of used household goods (e.g., furniture and appliances) is also much less than their original cost. Photographs, purchase receipts, and newspaper ads describing similar property should help support a valuation.

Download our Noncash Charitable Contributions form to help you document your non-cash contributions.  The form includes detailed instructions, and the data can be entered from your computer keyboard, saved and printed after it is completed.  You can also print it out and enter the data manually.  It includes an area for the charity to verify the contribution.

• Cars and Other Vehicles: See Donating Cars to Charity.