How to Figure the Value of Donations to a Thrift Store

Check out thrift stores to help you figure the value of your donations.

Donating to a thrift store can benefit the less fortunate. Yet, you don't have to walk away empty-handed. The Internal Revenue Service (IRS) allows taxpayers to take tax deductions for thrift shop donations if the items are in good condition or better. While there's no standard guide for valuation, a bit of research can help you determine the value of your donations to a thrift store.

Instructions

1. Make a list of the items you plan to donate to a thrift store. Include the brand name for accuracy. Item brands that are considered high-end will have a higher value than cheaper or lesser-known brands. Make sure all brand labels are intact on the item or the value will be lower. The items must be in at least good condition -- no noticeable wear and tear -- for you to claim them as a deduction on your taxes, according to the IRS.

2. Take your list to a thrift store and look for similar items. Locate the selling price of each item that matches something on your list. Record the thrift store's price for the similar item next to the item on the list.

3. Look at online sites that sell used household goods and clothing such as eBay, Amazon and Craigslist. Check donation valuation guides on sites for charities such as Goodwill and The Salvation Army. Find the prices of products that are the same, or similar to the ones on your list. Record the prices next to the matching items on your list.

Tips & Warnings

• Get a receipt when you make a donation and store it with your tax records. Many charities will give you a blank, dated receipt that you can fill in and keep for your records.

• Some computer tax programs offer built-in donation valuation guides that make it simple to figure values.

• Frayed or torn items, or items that are no longer in style or usable are not considered eligible for a tax deduction by the IRS.

• Donations can be deducted only for the calendar year in which you donated them.

References

• MSNBC; Today - How to Value Donations to Thrift Shops; Jean Chatzky; June 19, 2004
• Donation Town: Tips for Getting the Most Out of Your Charity Donations
• IRS: Publication 561

Resources

• The Salvation Army: Valuation Guide for Salvation Army Donations
• Goodwill: Valuation Guide for Goodwill Donors
• eBay
• Amazon.com
• Craigslist