Spring cleaning or simply decluttering? Don’t toss those gently used clothes, toys, or household items just yet—donating them could do more than clear your space. It might also lower your tax bill.
When you donate items in good condition to a qualified 501(c)(3) nonprofit organization, you may be eligible for a federal tax deduction. It’s a win-win: your donation supports a charitable cause and you could receive a tax benefit in return.
What You Need to Know
- Only donate to qualified organizations.
- To claim a deduction, your donation must go to a tax-exempt 501(c)(3) charitable organization. Common examples include Goodwill, The Salvation Army, Habitat for Humanity ReStores, and local shelters or religious institutions. If you’re unsure, you can verify an organization’s status using the IRS’s Tax Exempt Organization Search tool.
- Keep items in good condition.
- The IRS requires that donated items be in usable, good condition or better. Items that are broken, excessively worn, or unsafe generally don’t qualify.
- Get a written acknowledgment.
- If your donation is worth more than $250, you must have a written acknowledgment from the charity to claim the deduction. This should include:
- The name of the organization
- A description (but not value) of what you donated
- A statement confirming whether you received any goods or services in return
- Even for smaller donations, it’s a good idea to keep a receipt or record with the date, organization’s name, and estimated value of the items.
- If your donation is worth more than $250, you must have a written acknowledgment from the charity to claim the deduction. This should include:
- Know your limits.
- Generally, you can deduct charitable contributions up to 60% of your adjusted gross income, but limits vary depending on the type of donation and the organization. If you’re unsure how much you can deduct, check with a tax professional.
Tip: Make a List Before You Donate
Create a detailed list of everything you’re giving away and assign a fair market value (what the item would sell for in its current condition).
Doing good feels great—but it can also be smart tax planning.
As you donate this year, take a few extra minutes to document your contributions properly. It could make a positive difference for both your community and your tax return.
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