How to Get a Tax Receipt for Thrift Store Donations

Not all thrift shops are the same. If you need a tax receipt for your donation, make sure it is a federally approved 501(c)3 organization.

Difficulty: Moderately Easy

Instructions

1. If you need a tax deduction for your thrift shop donations, be sure you give to a federally approved 501(c)3 charitable organization. Before you bring in your donation, ASK if they give tax receipts. A legitimate tax receipt shows the organization/store name, physical address, phone number, and states that it is a 501(c)3.

2. It's not easy for thrift shops to qualify for 501(c)3 status. In order to give tax-deductible receipts, 100% of store profits (after expenses) must go directly to the charity. The organization must go through a comprehensive application process and follow strict federal guidelines.

3. The fact is that most thrift shops are privately owned "for-profit" businesses. Many pledge support for their charity of choice, but there is no legal accountability for how much money they actually contribute. If you donate to a privately owned thrift shop, be aware that you can only get a thank you, not a legitimate tax write-off.

Tips & Warnings

• If you want to maximize your tax advantage, take these additional steps to document non-cash donations.
• Make a list and take close-up photos of the items you are donating.
• Bring the list with you so that the store clerk can write the items on your receipt and sign for them.
• Thrift stores are not allowed to determine the dollar value of donated items on your receipt. It's up to you to add the amounts.
• To establish value, research online using IRS guidelines, eBay, thrift store web sites, etc. Print your source and attach to the receipt along with your photos.
• The IRS has recently tightened its rules on non-cash donations. If you get audited, you stand a much better chance of having your thrift shop deduction allowed if you can satisfactorily document (1) that your donation went to a federally approved 501(c)3 organization, (2) exactly what you donated, (3) its condition, and (4) how you determined value.

[CBPope]

on 11/23/2008 great info. I needed this

[CBPope]

on 11/23/2008 great info. I needed this