The Internal Revenue Service Publication 526 states, If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. You set your own valuation for the item you donate, but you should make an effort to establish that the price you set is indeed the fair market value. Fortunately, guidelines exist to help you find the value of many items.
Instructions
1. Make a list of items donated. Your description doesn't have to be terribly detailed, but it should be specific. Instead of miscellaneous clothing, list three men's shirts, one woman's dress, toddler jeans and one pair of women's tennis shoes.
2. List the condition of each item. Condition makes a difference on valuation. An almost-new shirt you wore twice is worth more than a 5-year-old shirt with a missing button and a stain.
3. Consult the Salvation Army or Goodwill Industries guides for valuating donations. For instance, the Salvation Army values men's shirts from $3 to $14.40, depending on condition, while Goodwill Industries sets a value of $2 to $10. You may choose one of these values or pick an average.
4. For collectibles, art, or unusual items, look on eBay. You can see what similar items have sold for. On the eBay search, choose Advanced Search, and select Completed Auctions. This will help you establish fair market value of your donation. For antiques, consult published evaluation guides or auction catalogs.
Related Posts:
Assign A Value To Charitable Gifts
Non-profit organizations rely on support from a variety of sources, including grants, private donations and gifts-in-kind. If you choose to donate furniture, art or other items to a charitable org...
Holiday Charitable Gifts
Giving generously to charities during the holidays can help those in need.Many people look for ways to donate items to charity during the holiday season. Charitable organizations are always seekin...
Gifts For Kids Charitable Organizations
Charitable organizations help children with a variety of needs.There are charitable organizations that specialize in gifts for kids. You can make one-time donations of money or goods to one of the...
Match Charitable Gifts
With a charitable gift-matching program, your pennies can be multiplied.Matching gift programs are tools often used by charities and other organizations to raise needed funds for their operations....
Host A Charitable Dinner Party
Host a Charitable Dinner PartyBling is out, philanthropy is in. The evidence is traced back to social capitalists Warren Buffet and Bill Gates. Both have donated billions to charitable causes arou...
