By Amy from PA
The company donating must have an appraisal if the combined value is over $5,000. There is a IRS publication 561 about donations and fair market values. There is also a Form 8283 they must have to claim the donation. It is their responsibilty not yours. You can list what they give you and look for the "used" prices items in good condition or better would fetch on the local market. Personally, if they want the deduction they should talk to their tax adviser for the advice. Good luck...check out IRS website - I googled IRS fair market value donations and got lots of info....
Hello, Amy. I did not read MCW's links but let me share with you my personal experience as a public service, non profit agency, employee for assigning "values" of donated materials . Don't do it without the accountable advice of a tax professional.
As a receiver of donations, your responsibility is to acknowledge the receipt of such and not necessarily to assign a value to such, after all, it is the giver - not the receiver, in most donation collection ventures that gets the tax breaks. And let's face it, unless it is cold hard cash, the value is subjective at best.
We put the responsibility of value assessment on the giver, leaving the value amount blank and stating that the value assessed was that of the giver, i.e.: the one who got the tax break.
This was back in the 80's and 90's, so do research the current day of legalities on this matter before taking my word as gospel, just take care to not get caught up in what could come back to haunt you via an IRS audit issue. Take care and proceed smartly. Best of wishes.
What is the value of yarn to be donated to a charity? I have a large box filled with yarn for donation, as well as, patterns, knitting needles, and latch and crochet hooks. The yarn varies, some wool, some nylon, etc. and varies in color, but most is enough to make something.
By A Cohen
Guesstimate the weight of the yarn (by types), the number of knitting needles, latch hooks, and crochet hooks (by size), then do a search on the Internet for comparable values of these items. Those figures will give you a good idea about the value of your donations.
To help you determine your donations "fair market value", Goodwill provides a "Value Guide" and offers average prices in their stores for items in good condition. Get a receipt and this can be deducted from your taxes. You will be surprised how much this adds up.
I usually keep a bin or box and collect items as I go throughout the year. I just love it when it gets full and I have to start another one. I also write down all items I give. This is needed for tax verification or for the person doing the taxes.
This is probably a great incentive for one to clean out the clutter around the house and you can claim it on your taxes at the end of the year. Individuals with disabilities and other barriers are employed at certain facilities, this helps them as well. Also this will help the needy, too. What a way to make your Heart-Strings feel happy. Go green for the environment as well. Recycle everything.
A great time to shop stores such as Goodwill, Salvation Army, Valley Rescue Mission, etc. is after Christmas. Stores such as Target, etc. donate items as well, to these stores in great or new condition.
Whenever I got to town, I start packing up my truck and take a load of goodies to one of the Donation Centers.
Here is the website I visited with a list of items that give you the prices for fair market value.
By Mona from Hatchechubbee, AL
For those of you who do your own taxes with TurboTax, they offer their ItsDeductible software free and the two work together to find fair market values for your donated items. If you use an accountant or taxpro, then charitydeductions.com also provides values for nearly anything sold on eBay and doesn't require you to purchase Turbotax later to view your results. (12/19/2008)
How do I value clothing items I've donated throughout the year? I took pictures of each item for our records, but now I need to put a value to each item.
By Candace from Scottsdale, AZ
How can one best determine fair market value of vintage furniture (wicker) donated to charity?
By Patricio from Los Angeles
How can I determine the fair market value for a car seat, infant swing, infant walker, and exercise equipment?
By kb from Cincinnati, OH
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