Donation Value Guide

1. Assess the Condition

Items must be in good condition or better to be deductible. The IRS generally doesn't allow deductions for items that are damaged, worn out, or not usable.

• • Excellent: Like new, no visible wear
• • Good: Minor wear, fully functional
• • Fair: Noticeable wear but usable

2. Research Comparable Sales

Check what similar items sell for in your area. Look at:

• • Thrift stores and consignment shops
• • Online marketplaces (eBay, Facebook Marketplace, etc.)
• • IRS Publication 561 for guidance

3. Consider Age and Brand

Newer items and well-known brands typically have higher values. Designer or high-end items may be worth significantly more than generic alternatives.

4. Document Everything

Keep detailed records including:

• • A list of items donated with descriptions
• • Photos of items (especially valuable ones)
• • Receipt from the charity
• • Your valuation method and research

Good Condition Requirement

For clothing and household items, the IRS requires items to be in good condition or better. Exceptions apply for items worth over $500 or if you include a qualified appraisal.

Documentation Thresholds

• • Under $250: Receipt from charity is sufficient
• • $250–$500: Written acknowledgment from charity required
• • Over $500: Form 8283 required
• • Over $5,000: Qualified appraisal typically required

Qualified Charities

Only donations to qualified 501(c)(3) organizations are deductible. Verify the charity's status using the IRS Tax Exempt Organization Search tool before making a donation if you plan to claim a deduction.

What is fair market value for donated items?

Fair market value (FMV) is the price that property would sell for on the open market between a willing buyer and a willing seller. For donated items, this typically means the price you could expect to receive if you sold the item in its current condition at a thrift store, consignment shop, or online marketplace.

How do I determine the value of donated clothing?

Clothing donations typically range from $3–$50 per item. Designer items, formal wear, and outerwear tend to be on the higher end, while basic t-shirts and casual wear are typically lower. Consider the item's condition, age, brand, and check comparable sales at thrift stores or online marketplaces like eBay or Facebook Marketplace.

What documentation do I need for donated items?

Documentation requirements vary by value:

• • Under $250: Receipt from charity is sufficient
• • $250–$500: Written acknowledgment from charity required
• • Over $500: Form 8283 (Section A) required
• • Over $5,000: Qualified appraisal typically required

Always keep photos, item descriptions, and your valuation research for your records.

Do donated items need to be in good condition?

Yes, for clothing and household items, the IRS requires items to be in good condition or better to be deductible. Exceptions apply for items worth over $500 or if you include a qualified appraisal. Damaged, worn out, or unusable items generally cannot be deducted.

Can I deduct donations to any charity?

No, only donations to qualified 501(c)(3) organizations are tax deductible. You should verify the charity's status using the IRS Tax Exempt Organization Search tool before making a donation if you plan to claim a deduction.

Where can I find more information about donation valuation?

The IRS provides detailed guidance in Publication 561: Determining the Value of Donated Property . This publication includes valuation guidelines for various types of donated property. You can also use our Tax Savings Calculator to estimate how your donations might affect your tax deductions.