Question

I would like to take advantage of my Goodwill donations tax deduction. If I have the receipts for Goodwill donations totaling less than $5,000, do I also need a donation receipt letter from Goodwill?

Answer

 

The type of donation records which may include a donation receipt letter will depend upon the amount of your contributions and whether they are:

  • Cash contributions
  • Noncash contributions
  • Out-of-pocket expenses when donating your services

Typically, an organization must give you a written statement if you donate more than $75.

Cash contributions

Cash contributions are those paid by:

  • Check
  • Electronic funds transfer
  • Debit or credit card
  • Payroll deduction

If you make a cash contribution, you must have one of these:

  • A bank record that shows:
    • Name of the qualified organization
    • Date of the contribution
    • Amount of the contribution
  • A receipt or letter from the qualified organization showing:
    • Name of the organization
    • Date of the contribution
    • Amount of the contribution
  • Payroll deduction records — These can include a pay stub, your W-2, or another document from your employer.

Noncash contributions

To qualify for a Goodwill donations tax deduction of noncash contributions or noncash contributions made to other charitable organizations The records you must keep depend on:

  • The type of contribution
  • The amount of your contribution

To deduct a noncash contribution in any amount, you’ll need to get and keep a receipt, letter, or other communication from the charitable organization showing:

  • The name of the qualified organization
  • The date and location of the charitable contribution
  • A reasonably detailed description of the property

You must also keep reliable written records that include:

    • The name and address of the organization to which you contributed
    • The date and location of the contribution
    • A description of the property in detail reasonable under the circumstances
    • The fair market value (FMV) of the property at the time of the contribution and how you determined the FMV. If it was determined by appraisal, you should also keep a copy of the signed appraisal.
    • The cost or other basis of the property
    • The terms of any conditions attached to the contribution of property

 

The type of donation records which may include a donation receipt letter will depend upon the amount of your contributions and whether they are:

      • Cash contributions
      • Noncash contributions
      • Out-of-pocket expenses when donating your services

Typically, an organization must give you a written statement if you donate more than $75.

Cash contributions

Cash contributions are those paid by:

      • Check
      • Electronic funds transfer
      • Debit or credit card
      • Payroll deduction

If you make a cash contribution, you must have one of these:

      • A bank record that shows:
        • Name of the qualified organization
        • Date of the contribution
        • Amount of the contribution
      • A receipt or letter from the qualified organization showing:
        • Name of the organization
        • Date of the contribution
        • Amount of the contribution
      • Payroll deduction records — These can include a pay stub, your W-2, or another document from your employer.

Noncash contributions

To qualify for a Goodwill donations tax deduction of noncash contributions or noncash contributions made to other charitable organizations The records you must keep depend on:

      • The type of contribution
      • The amount of your contribution

To deduct a noncash contribution in any amount, you’ll need to get and keep a receipt, letter, or other communication from the charitable organization showing:

      • The name of the qualified organization
      • The date and location of the charitable contribution
      • A reasonably detailed description of the property

You must also keep reliable written records that include:

      • The name and address of the organization to which you contributed
      • The date and location of the contribution
      • A description of the property in detail reasonable under the circumstances
      • The fair market value (FMV) of the property at the time of the contribution and how you determined the FMV. If it was determined by appraisal, you should also keep a copy of the signed appraisal.
      • The cost or other basis of the property
      • The terms of any conditions attached to the contribution of property

Related Topics

Related Resources

Section 179 Deduction Limits

Can you claim your new vehicle under Section 179 deduction limits? Learn more from the tax experts at H&R Block.

Credit for Prior-Year Minimum Tax – Form 8801

Learn about IRS Form 8801 with help from H&R Block. Our tax pros explain how the credit for prior-year minimum tax may affect you.

Do You Claim Workers Comp on Taxes?

Learn more about claiming workers comp on your tax return from the tax experts at H&R Block.

Michigan Tax Refund

Want to know when you will get your Michigan state refund? Here we’ll cover the details of checking on and receiving your Michigan tax refund.