Tips and Advantages
Items must be in good condition or better in order to claim a tax deduction. Donating clothing, shoes, housewares and small size furniture to Mary’s Center helps us in our mission to build better futures through the delivery of health care, education, and social services.
Donations are also an easy way to get a tax deduction because Mary’s Center is an IRS-approved 501(c)(3) nonprofit organization.
But before you donate, there are some important things you need to know. Per IRS Publication 561, all nonprofit organizations are prohibited from assigning values to material donations. That means it is the donor’s responsibility to determine the item’s fair market value.
Federal Tax ID: 52-1594116
Here are some tips to make your tax preparation easier:
- First and foremost, we suggest you to consult a tax accountant anytime you have questions about your claim. Let’s, for example, consider the fair market value of a donated pair of shoes. If you bought a new pair of shoes for $60 two years ago and then you donate it to Mary’s Center, a good way for estimating the fair market value of that pair is to check the sales price of a similar (or the same) pair of shoes in a thrift store around your area. If the sales price is, for instance, $2.99, then its fair market value for tax purposes is $2.99 (not $60). Classified ads from local newspapers for similar merchandise can be also excellent resources to help determine fair market values. Please see our Value Work Sheet to learn more.
- If you believe the value of your donation is over $5,000, and if you plan to claim a charitable tax deduction for your donation, you may need to have Mary’s Center to complete certain tax forms to be able to claim a charitable deduction. Before making a donation of that value, please call us.
- If any single item that you are donating is not in good condition and you plan to claim a deduction of more than $500 for that single item, you may need an official appraisal for that item made by a third party specialised on that.
- Only taxpayers who use our full form and complete all details requested and itemize all items donated can deduct charitable donations.
- If you do not normally itemize but made a sizable charity donation, the donation must be greater than the standard deduction.
More IRS guidelines for charitable contributions can be found at their web site, click here or call toll-free at 1-800-829-1040.The information contained on this website does not constitute legal advice or tax advice. Its authors make no claims about its accuracy, completeness, or up-to-date character. The material on this website is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding U.S. federal tax-related penalties, or (ii) promoting, marketing or recommending to another party any tax-related matter addressed herein.