What Qualifies as a Non-Cash Charitable Tax Deduction?

Nashua, NH Resident Seeks Guidance

For non-cash donations that are worth less than $250, a receipt from the charity will suffice for record keeping, allowing you to deduct this on your taxes.  The receipt should contain a list of all items being donated, their condition and an estimated value for each.  For donations exceeding the $250 value you will need a written acknowledgement from the charity in addition to the receipt.

A Nashua resident was looking to donate items to a local charity and wanted to better understand how these charitable items could be deducted from his taxes.

Record Keeping is Critical in Non-Cash Donations

Any time you make a charitable donation it is important to keep a record of this exchange.  However, with non-cash items this record keeping becomes even more important.  Charitable organizations will provide receipts for donations.  Typically, the onus of outlining the items being donated and their condition will fall on the giver.  It is important to keep a list of the items, marking each as fair, good or excellent condition.

Setting a value for each item can be a little trickier.  This value should be what the donation will be worth to the charity.  For example, if you are donating clothes that the charity will resell the resale value or an estimate will suffice.

Non-Cash Charitable Items Exceeding $500

If your donation exceeds $500 for the year, in addition to keeping the itemized list and receipt from the charity you will need to fill out a Form 8283.  This form, which is specifically for Noncash Charitable Donations, will be included in your tax return.

After learning about the necessary paperwork that goes along with non-cash charitable donations, the Nashua resident will be sure to have records and receipts of all of his donations for the year.