Donation Value Of "One Bag Of Clothing"

Question

Early last year, I donated clothes to Goodwill and received a donation receipt for "one bag of clothing."

I have no memory or documentation of exact contents to calculate an amount.

Given only the receipt, what is an acceptable value?

Answer 1

$0.00.

If audited, you'll have to show an itemized list of donated items, and the value for each based on their sale price in that thrift shop.

You should always keep a list of what you donate, the donation centres don't have the time or capacity to write and evaluate every single piece of old clothes that everyone donates, they just take the bags and that's it. It is your responsibility to keep the adequate records.

Answer 2

Charitable donations require a lot of record keeping. If you don't have those records, you don't have a write off.

Unless that bag of clothes raises your donation levels to the point of a write off, I wouldn't worry about counting it.

From the H&R Block Site on Charitable Donations

Record Keeping Requirements

Noncash donations of less than $250

The organization must give a receipt showing:

• Organization’s name and address
• Date and location of donation
• Reasonably detailed description of the property donated

However, you don’t have to get a receipt if it’s impossible or impractical, like when property is donated at an unattended drop-off site. In these cases, you must keep a reliable written record for each donated item showing:

• Organization’s name and address
• Date and location of donation
• Reasonably detailed description of the property donated
• Fair market value of the donation at the time of donation with explanation telling how you figured the fair market value
• Cost or other basis you had in the donation if you must reduce the fair market value by appreciation. The record must also show the amount of the reduction and how you figured it.
• You might be contributing less than the entire interest in the donation. If so, you must show the amount you’re claiming as a deduction for the year as a result of the donation.
• If the other portion of the interest has been donated, you must provide details of each donation of the other interests.
• Terms and conditions attached to the donation

Valuation of donated items

Item Donations

Donating property can earn you a deduction just as donating money can. Property donations are usually used clothing and household goods. Your write-off for these is the fair market value of the property at the time you give it.

Item donations must be in good used condition to qualify for a deduction. "Good used condition" isn’t defined. However, only deduct donations the organization plans to sell or to use for its charitable purposes. If an item is heavily worn, ask the organization if it will sell or use the item.

It’s often difficult to determine the fair market value of used items. Even the IRS has no stated amounts considered acceptable for these items. However, the Salvation Army publishes a guide providing the average prices of clothing, furniture, and household items in its stores. You can use this guide to establish the value of these items.

To learn more, see IRS Publication 561: Determining the Value of Donated Property.

When you donate a vehicle to a charity, special rules apply. If the charity sells the vehicle, the charity must send you a Form 1098-C within 30 days of the sale telling you the sales price. This sets the amount you can deduct on your return.

However, there's 1 exception. If the claimed car’s value is $500 or less, you can deduct the value of the donated vehicle. You’ll still deduct the vehicle's fair market value at the time of the donation if the charity:

• Makes substantial improvements to the car
• Fixes up the car and sells it
• Gives it to a needy person
• Uses it in its charitable efforts

To learn more, see IRS Publication 526: Charitable Contributions.