Guide to Donating Noncash Items

Step 1: Determine whether or not the items you wish to donate are useful. 

Most charities can only make use of items that are new, unused, or nearly new. If you don't have any use for your old, tattered couch, rusty washing machine, or other used item, chances are neither will a charity. Similarly, a timeshare that has turned out to be a bad investment for you won't do much to help out a worthy charity. If you think that the items you wish to donate may be of use to someone else proceed to Step 2.

Step 2: Consider selling your items and donating the proceeds to charity.

By donating cash instead of goods you allow charities greater flexibility in spending the money so that it reaches the people or animals that need it the most. When you sell the items yourself you also eliminate the for-profit middleman that can take a big cut of the money intended for charity. When you sell the items yourself you also unburden charities of any time and money they would have to spend on selling or refurbishing the items, allowing them to spend more resources directly fulfilling their missions. Finally, by selling the items yourself, you know the exact value of the donation you can report to the IRS and don't have to worry about estimating the amount for your tax returns.

Online auction sites such as eBay or classified ads such as craigslist are good places to sell your new and used items. You could also get your friends and neighbors together for a multi-family garage sale, and donate the proceeds to a local charity. Whether or not you decide to sell your items and donate the cash, or you still think your items may be of use to a charity in need, proceed to Step 3 to find the right charity to accept your generous support.

Step 3: Start locally to find the right charity. 

In order to avoid transportation costs that can lower the impact of your donation, look first in your local community to find a charity to support with your noncash contribution. Call around and ask charities if they accept the kind of items you are looking to donate, and if they don't find out if they have any suggestions of a charity that does.

You can use Charity Navigator's database to find a charity in your local area that might be interested in donated goods by using our advanced search feature and searching for charities within your state, city, or within a set radius from your zip code. Within the results list you can also click on "Re-sort by: Overall Rating" to see these charities listed from highest to lowest rated. Once you see a few efficient charities that you think may be interested in your donated goods you can use the contact information provided on their ratings page to discuss with them how you might be able to arrange such an donation.

How to donate a car to charity

How to donate a car


It sounds so simple: Donate your used vehicle or boat to charity, avoid the hassles associated with selling it, and score a tax deduction at the same time. Everybody wins, right?
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Not necessarily. As the saying goes, the road to h-e-double-hockey-sticks is paved with good intentions, and it can be surprisingly easy to fumble this well-meaning act.
Before you hand one of your biggest assets over to anyone, read the following tips to be sure you’re making the right moves.
1. Avoid middlemen. Numerous for-profit intermediary organizations advertise aggressively on TV, billboards and elsewhere, offering to help you donate your vehicle to charity. Here’s the catch: These organizations typically keep about 50 percent to 90 percent of the vehicle’s value for themselves, and the charities don’t get what they could have gotten. To prevent this, check directly with charities you admire and find out whether they accept car or boat donations.

2. Find a worthy charity. If the charities you normally support aren’t equipped to accept such donations, do some homework until you find a reputable charity that is. You can research charities’ track records online at this Better Business Bureau site and through Charity Navigator.

3. Check the math. If you still feel compelled to use an intermediary organization – possibly because you’re busy – at least ask the organization how much of the car or boat’s value will go to charity. If the organization simply gives charities flat fees — say, $100 for a used vehicle regardless of its value, or $2,000 a month — your donation may not be eligible for a tax deduction.

4. Know the status of your recipient. In order for you to qualify for a deduction, the charity that gets your donation must be an IRS-approved 501(c)(3) organization. Your church, synagogue, mosque or temple likely qualifies. (Check first just to make sure.) You also can visit the Internal Revenue Service’s Web site and search for Publication 78 to find other qualifying non-profit organizations. (Just type “78” into the search field on the IRS home page and you’ll be directed to the right publication.)

5. Do the delivery yourself. Once you’ve identified a worthy charity, recognize that it will have to pay someone to pick up your car or boat for you. To help the charity maximize the benefit of your donation, drop the car or boat off yourself.

6. Transfer the vehicle with care. Want to eliminate all risk of running up parking tickets and other violations after you’ve said goodbye to your donated vehicle? Then formally re-title the vehicle to the charity, and report the transfer to your state’s department of motor vehicles or licensing. Never agree to leave the ownership space on the charity donation papers blank.

7. Your estimate of the donation’s value probably won’t cut it. If your car or boat is worth more than $500, the IRS is going to want to see evidence of how much the charity got for it. (Most charities that accept these donations turn around and sell them for cash.) You’ll need to get a receipt from the charity revealing exactly how much money it made.

8. Know when you can report the fair market value. You won’t need evidence of the sales price if the charity keeps the vehicle or vessel and uses it in its charitable work, or if your donation is worth less than $500. Then you can report its fair market value based on listings from Kelley Blue Book and similar sources.

9. Keep a thorough paper trail. If your donation is worth more than $500, you’ll have to attach IRS Form 8283 to your tax return. If it’s worth more than $5,000, your documentation must include an outside appraisal. You’ll also need proof of the donation, such as a receipt from the charity and a copy of the title change.

10. Be detail-oriented. This paper trail may seem cumbersome, but think about it: This may be one of the biggest charitable donations you ever make. By taking the time to dot the i’s, you can make sure that the charity gets the most benefit and you get the biggest possible deduction.