Tax Information

When you donate to Goodwill we provide you with a receipt listing the date you donated and a brief general description of the property received.

A new federal tax measure- The Pension Protection Act of 2006, requires donors to better document their giving of all kinds when filling out their tax returns. That means donors can't donate clothing or household goods and deduct donations from their taxes, unless the items are in "good condition or better". As far as charities are concerned, the real guidance must come from the Internal Revenue Service. The charity does not place a value on donated items.

If you are itemizing deductions for tax purposes, the value of the donated goods is solely determined by the donor. For donations valued at more than $500, but not over $5000, Goodwill’s obligation remains the same (furnishing of receipt), but the donor’s obligation to the I.R.S. is enlarged. Not only must the donor maintain a receipt of the donation, but he or she is also required to maintain and submit to the I.R.S. additional written records of:
1) the manner in which the property was acquired, and 2) if the property has been held for less than 12 months, his or her cost or other basis. This requirement is met by filling out Section A of I.R.S. Form 8283, "Noncash Charitable Contributions".

The donor does not need to supply Goodwill with a copy of this form nor does Goodwill sign unless total claimed deductions are more than $5000. When a donor claims a deduction in excess of $5000, the donor must have the property appraised before the I.R.S. will allow the deduction. The donor is also required to submit two copies of the appraisal summary, I.R.S. Form 8283, Section B to Goodwill along with the donated property. Upon receipt of these two appraisal summaries, Goodwill will complete Part IV of Section B ("Donee Acknowledgment") of both 8283 Forms.

After filling in the proper information Goodwill will keep one copy on file and return the other copy to the donor. This returned copy serves as the donor’s receipt and should be attached to his or her income tax return.To learn more about Noncash Charitable Contributions visit the IRS website:
http://www.irs.gov/charities/article/0,,id=96102,00.html

New Law about Vehicle Donations as a Tax Deduction

Beginning January 1, 2005, taxpayers can deduct only the proceeds the charity gets from the sale of the vehicle. Donors must receive a written acknowledgement from the charity that includes the sale price of the vehicle. If the charity uses the vehicle for a charitable purpose, such as a Goodwill wheels-to-work program, donors may deduct the fair market value of the vehicle, and must obtain written acknowledgement from the charity that states how the vehicle will be used. The charity must provide you with written acknowledgement within 30 days of the sale of the vehicle or, if the vehicle is to be used for a charitable purpose, within 30 days of the donation.

For more information, visit the IRS website: http://www.irs.gov/charities/article/0,,id=139559,00.html