General Tax Deduction Guidelines
Here are the general guidelines for donations of household goods and clothing to the North Carolina Poverty Coalition. These guidelines are based on information obtained from the Internal Revenue Code and other sources (appropriate citations of IRS and Treasury Department documents are in parentheses). As with any tax-related information, an individual donor should always consult a tax professional to resolve questions regarding their particular donation.
North Carolina Poverty Coalition Inc. Tax-exempt #: 45-3852145
If an individual donates property they may deduct the property’s fair market
value at the time of the donation, subject to the statutory limitations on such
donations. Fair market value is defined as the price at which the property would
change hands between a willing seller and a willing buyer. For property, it is
generally held that fair market value is the price at which the item or a
comparable item would be sold at retail (IRS Rev. Proc. 65-19, 1965-2 CB 1002).
Further, the fair market value of used clothing and household items is the price
that buyers of used items actually pay in used clothing stores (Treasury
Department booklet, Your Federal Income Tax, 1993 edition, p.186).
It is the donor’s responsibility to determine the value of donated items.
If the donation is $250 or more, but does not exceed $500, a written
acknowledgment of the donation must be provided by the donee. In the case of
N.C.P.C., the donation receipt fulfills this obligation.
If the donation is over $500, but does not exceed $5,000, the donor must
complete IRS form 8283, Non-cash Charitable Contributions, Part A only. They
should file this form with their tax return.
Please consult form 8283 on the Internal Revenue Service website.
If the donation is over $5,000, the donor must complete IRS form 8283 and send it to:
North Carolina Poverty Coalition Inc.
309 Potts Road Dudley N.C. 28333
N.C.P.C. will complete section B, part IV, and return the completed form to
the donor. The donor should retain the form to file with their tax return for
the tax year in which the donation was made. Obviously, the donor should send
the form to the N.C.P.C. Office as soon as possible after the donation is made
in order to allow sufficient time for N.C.P.C. to process and return the form in
time for the donor to file their taxes. In addition, an appraisal performed by
a qualified appraiser may be required.