Tax deduction
What you can claim, and the paperwork that proves it.
Start with the one thing that decides everything else
A charitable deduction only reduces your tax if you itemize on Schedule A. If you take the standard deduction — and most households do — a donation to us is still a real gift that still does real good, but it will not change your return.
We say that first because nobody else does. If a charity implies you will “get a write-off” without mentioning itemizing, they are hoping you assume something that may not be true for you. Worth checking with whoever prepares your return before you make a decision based on the tax side.
Everything below assumes you do itemize. The amount you can claim then depends on what you gave, what we did with it, how long you owned it, and which of three dollar thresholds it falls into.
The short version
- We are a 501(c)(3), EIN 92‑1162407. Gifts to us are deductible under IRC §170.
- You determine the value of your donation, not us. That is the donor’s responsibility under IRS rules.
- Above $5,000 you need a qualified independent appraisal. We cannot provide or pay for it.
- For most vehicles, your deduction is what the vehicle actually sold for. We send you that figure.
- You always get written acknowledgment for your records, whatever the amount.
The authoritative sources are IRS Publication 526 on charitable contributions and Publication 561 on determining the value of donated property.
Three thresholds, three sets of paperwork
Which one applies depends on the total value you are claiming for the donation, not on what it cost you originally.
Under $500
Keep your own records
No extra form. Claim the fair market value on Schedule A and keep our acknowledgment with your records. For anything valued at $250 or more the IRS requires that written acknowledgment, so hold onto it.
Clothing and household goods have to be in good used condition or better to be deductible at all.
$500 to $5,000
Form 8283, Section A
File Form 8283 Section A with your return. You describe the property, when and how you acquired it, what you paid, and the value you are claiming. No appraisal required at this level.
Vehicles crossing $500 follow their own rule — see the section below.
Over $5,000
Qualified appraisal required
Form 8283 Section B, plus a qualified appraisal by a qualified appraiser. We sign the donee acknowledgment section confirming we received the property. We do not and cannot state its value.
Above $500,000 the appraisal itself is attached to your return. Publicly traded securities are exempt from the appraisal requirement at any amount.
The thresholds apply to similar items as a group, not piece by piece. Twelve pieces of jewelry claimed at $600 each is a $7,200 donation of similar property, which puts you in the third column rather than the second.
Vehicles work differently
Cars, trucks, motorcycles, RVs, boats and aircraft have their own rules, written in 2004 specifically because donors were claiming book values on vehicles that sold for scrap.
If we sell it — the usual case
Your deduction is the gross proceeds of the sale, whatever that turns out to be. We send you Form 1098‑C with the exact figure within 30 days of the sale, and you attach a copy to your return. Not the guide book value, not our estimate — the real price.
If it sells for $500 or less
You may claim the lesser of fair market value or $500 without needing the sale figure. This is why a tired car with little resale value is still worth donating rather than scrapping — and why we are honest with you about which category yours is likely to fall into.
If we give it to someone in need
When a vehicle goes directly to a family, or is sold to them well below market value, you may claim full fair market value instead of proceeds. We tell you when this happens, and 1098‑C records it. This is the outcome we look for first with any vehicle that runs well.
If we use it or materially improve it
Significant intervening use in our charitable work, or material improvement before sale, also lets you claim fair market value. Both are uncommon and both are documented on the 1098‑C we send you.
A year and a day changes the math
Property you have held longer than a year that has gone up in value is long‑term capital gain property. You generally deduct full fair market value and you owe no capital gains tax on the appreciation — which is precisely why donating an appreciated asset often beats selling it and donating the cash.
Held a year or less, your deduction is generally limited to what you paid for it, however much it may be worth now.
The related use rule catches people out
For tangible personal property — artwork, collectibles, jewelry, memorabilia — claiming full fair market value above $5,000 depends on the charity putting the item to a use related to its mission. If we sell it to fund our work, that counts as unrelated use, and your deduction is generally limited to your cost basis.
We would rather you knew this before donating than discovered it at tax time. If you are planning a significant gift of this kind, talk to your advisor and to us first.
Limits, timing and carryforward
Ceilings based on your income
Deductions are capped as a percentage of adjusted gross income — broadly 60% for cash gifts to a public charity, and 30% for appreciated property claimed at fair market value. Different categories stack under different ceilings.
Five years to use the rest
If your gift exceeds the ceiling for the year, the excess carries forward for up to five tax years. A large donation is rarely wasted; it just takes longer to absorb.
Which year it lands in
The gift counts in the year you part with the property — delivery, or the transfer of title. For a December donation, start early. Titles, liens and closings do not hurry for the calendar, and a vehicle collected on January 3rd is next year’s deduction.
Questions donors ask about the tax side
Can Giving Center tell me what my donation is worth?
No, and you should be wary of any charity that will. Valuing your own gift is the donor’s responsibility under IRS rules, and a charity that assigns a figure to a donation it received has an obvious conflict of interest. We confirm in writing what we received and, for vehicles we sell, exactly what it sold for. The valuation is yours.
Who counts as a qualified appraiser?
Someone with verifiable education and experience in valuing the type of property involved, who regularly performs appraisals for pay and meets the IRS standards in Publication 561. They cannot be you, us, or anyone with an interest in the donation. The appraisal must be dated no earlier than 60 days before the gift, and the cost is yours — though appraisal fees may themselves be deductible as a miscellaneous expense.
When will I receive my paperwork?
Written acknowledgment goes out once the donation is complete and in our hands. For a vehicle we sell, Form 1098‑C follows within 30 days of the sale, which is the point at which your deductible figure is actually known. If tax season arrives and something has not reached you, call us and we will reissue it.
Is it better to sell the asset and donate the cash?
Usually not, if the asset has appreciated and you have held it more than a year. Selling first triggers capital gains tax, leaving less to give and less to deduct. Donating the asset directly generally lets you claim fair market value with no gain recognized. The exception is tangible personal property caught by the related use rule described above. This is exactly the kind of question worth putting to your tax advisor.
Can I deduct what it cost me to ship an item to you?
Yes. Out‑of‑pocket costs you incur in making a charitable gift, shipping among them, are generally deductible alongside the gift itself. Keep the receipt. For larger lots, vehicles and business‑scale donations we arrange and pay for collection, so the question does not arise.
What if I am claiming several similar items?
Group them. The IRS applies the thresholds to similar items of property taken together across the whole tax year, not to each piece separately. A coin collection, a set of prints, or several pieces of jewelry are assessed as one donation of similar property, which can push you over $5,000 and into appraisal territory even though no single item comes close.
More on process, collection and what we accept in our donor FAQs, and on how donations are handled on our transparency page.
Talk it through before you commit
We can tell you which of these rules will apply to your donation, what paperwork you will receive and when, and what similar donations have returned. Ten minutes on the phone usually settles it.
What we cannot do is prepare your return or value your gift. For that, your own tax professional.