Still time for tax-deductible donations to Goodwill
Menasha — With only 10 days left in the calendar and tax year, now is the time to make a financial contribution or a material donation to Goodwill NCW or another nonprofit organization.
Making a tax-deductible contribution helps all parties.
“End-of-year donations not only help taxpayers create some financial opportunity for themselves when they file their return early in the new year, but they create opportunity within Goodwill NCW,” said Nancy Heykes, Goodwill NCW’s vice president of development. “We offer 30 programs and services across our 35 counties, and each of them needs financial support to improve lives in Wisconsin.”
Goodwill NCW served 63,701 people across its Wisconsin coverage area in 2015.
The human services organization creates job opportunities; job training; educational and financial counseling; community gardening outreach; restorative justice programs; intervention services for families with early childhood; LGBTQ programming; Miracle League baseball fields in the Fox Cities, the Lakeshore and the Chippewa Valley; School-to-Work programs; volunteer income-tax assistance and more.
It’s also time for making any final donations of clothing and household donations to Goodwill and gathering up your receipts. Go to bit.ly/GoodwillDonationGuide for a Goodwill valuation guide for donations.
Here are eight tips from the Internal Revenue Service (IRS) for taxpayers who make donations:
- To be a legitimate tax deduction, the donation must be made to a qualified organization. That doesn’t include donations to individuals, political organizations and candidates. Consult IRS Publication 526, Charitable Contributions, for guidelines.
- To deduct a contribution, you must file a Form 1040, and itemize deductions on Schedule A.
- To deduct your contribution of merchandise, tickets to a sporting event or other goods and services, you only can deduct the amount that exceeds the fair market value of the benefit received.
- Donations of stock or other non-cash property usually are valued at the fair market value of the property. Clothing and household items must generally be in good used condition or better to be deductible.
- Fair market value is generally the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of the relevant facts.
- To deduct a monetary contribution, you must maintain a bank record, payroll deduction records or written communication from the organization containing the organization’s name, the date of the contribution and the amount. For text-message donations, a telephone bill will meet the record-keeping requirement if it shows the name of the receiving organization, the date of the contribution, and the amount given.
- To deduct contributions of cash or property equaling $250 or more you must have a bank record, payroll deduction records or a written acknowledgment from the qualified organization, showing the amount of the cash and a description of property contributed and whether the organization provided any goods or services in exchange for the gift. One document may satisfy both the written communication requirement for monetary gifts and the written acknowledgement requirement for all contributions of at least $250. If your total deduction for all noncash contributions for the year is over $500, you must complete and attach IRS Form 8283 (Noncash Charitable Contributions), to your return.
- Taxpayers donating an item or a group of similar items valued at more than $5,000 also must complete Section B of Form 8283, which generally requires an appraisal by a qualified appraiser.
To make a tax-deductible donation to Goodwill, click on this link to www.goodwillncw.org/donate/financial.
About Goodwill: Goodwill NCW is a not-for-profit human services organization that in 2015 helped improve the lives of 63,701 people across 35 counties in north central Wisconsin, through 30 programs and services. The organization includes 27 retail stores and training centers in communities from Manitowoc to La Crosse, and as far north as Rice Lake and Rhinelander, as well as provides a unique shopping experience at its Appleton outlet store. It offers seven Donation Express sites and 45 donation bins located throughout the Fox Cities and surrounding communities. Goodwill NCW uses the revenue from stores to fund a variety of innovative programs and services that serve north central Wisconsin communities.