If you’d like to donate to a charity but don’t have cash to spare, you’re in luck. Many non-profit organizations gladly accept non-monetary donations, such as household goods, clothing, vehicles, and volunteer work. If you’re an attorney, nurse, doctor, or other professional, you could even consider donating your time and services to a good cause.
You may not be giving away money, but paying attention to a few best practices for non-monetary donations is still important. Doing so not only ensures you get the best tax advantages and social benefits of giving; it also ensures your goods and/or services will be received in the spirit in which they’re given. Here’s how to donate your goods, property, or time the right way.
What type of charity would you like to donate to? Maybe you’d prefer to give books to an organization that teaches underprivileged children how to read. Or perhaps you’re interested in donating pet food or volunteer time to a no-kill animal shelter.
Finding a charity you can feel good about donating to is vital. Look around your city, and you’re sure to find plenty of organizations in need. Of course, you’re not limited to local donations.
CharityWatch is an excellent resource for finding highly rated charities worldwide. To make this watchdog’s list, charities must generally:
Top-rated charities include:
If you wish to claim tax deductions, ensuring your charity of choice is legally compliant is important. Many so-called “charities” are businesses or even scams, not legitimate non-profit organizations. Here’s how to tell whether your preferred charity is one of the good ones and how to obtain the necessary documents to claim a tax deduction.
Before making a single donation, you must determine whether the fundraiser or charity is a real non-profit organization. Follow these best practices for non-monetary donations to do so.
Many charities say they’re not for profit, but that doesn’t mean you should take them at their word. Quite a few charity scams depend on donors not doing their due diligence.
It’s very easy to look up whether a charity is a legitimate non-profit, and you can do so in seconds. The IRS has a free Tax-Exempt Organization Search Tool that allows donors to:
The TEOS tool scans databases such as:
To use the tool:
Note that if you find an organization on the Automatic Revocation of Exemption List, the IRS may have reinstated the organization since then. Check Pub. 78 data or review its determination letter to find out.
Just because a charity is legally compliant doesn’t necessarily make it a good pick. Some charities misuse funds and goods, which means the organization might not use your donation as you intended.
Reading reviews is a smart way to learn whether a charity is worth your time. Charity Navigator has a good list of highly-rated charities; you can’t go wrong by picking any of them.
The BBB Wise Giving Alliance is another fantastic source of reviews. This organization rates charities on factors such as:
The BBB Wise Giving Alliance gives each charity a rating of “Meets Standards,” “Standards Not Met,” or “Did Not Disclose.” The “Did Not Disclose” status means a charity hasn’t responded to a request for information. This doesn’t necessarily mean a charity is bad; take the rating as a sort of “yellow flag” and proceed more cautiously than you might normally.
Per IRS rules regarding best practices for non-monetary donations, you can only claim a deduction for donations made to non-profit organizations, not individuals. You’ll also need to itemize your deductions on Schedule A (Form 1040).
It’s easy to determine the value of cash donations, but not so much for non-monetary contributions. To take a deduction on a non-cash donation, you’ll have to determine its fair market value. The FMV is the price the item would sell for on the open market. If you’re unsure, the IRS has a detailed guide (Publication 561) that explains how to calculate the FMV.
Let’s go over a few examples:
The IRS also has a few other requirements. For contributions of $250 or more (both cash and non-cash), you’ll have to obtain a contemporaneous written acknowledgment from the charity indicating the value of the gift and its description. The organization must also disclose whether it provided any service to you in exchange for the gift.
For non-cash gifts of more than $500, you must complete Form 8283, Non-cash Charitable Contributions. For a deduction of more than $500 but less than $5,000, you’ll also need to complete Section A of Form 8283. Deductions of more than $5,000 require you to complete Schedule B and attach an appraisal. For a property deduction of more than $500,000, fill out Section B and attach the property’s qualified appraisal to your return.
If you wish to claim a donation on your taxes, you must get a donation receipt from the charity. Some charities automatically give you one, while others require you to request the receipt. A few charities also have an online receipt generator that allows you to fill in the details of your donation yourself.
Once you have the receipt, be sure to keep it in a safe place. You will need to refer to the receipt when filing your taxes.
Don’t throw the receipt away after filing your taxes. If you’re taking an especially large deduction, there’s a chance that the IRS may audit you. If that happens, the IRS agent will likely want to see the receipt.
Once you’ve chosen a charity, you must figure out what you want to give. If you’re at a loss, consider some of the types of donations below.
In-kind donations are any donations that don’t consist of giving cash directly to an organization. They fall into three categories:
In-kind gifts can be just as helpful as cash, sometimes even more so. Donations to consider include:
Per best practices for non-monetary donations, you should consider an organization’s goals carefully before making an in-kind donation. If you make a poor gift, it could burden the organization rather than help it. For instance, if a charity helps stray animals, there’s no benefit to donating clothing, diapers, or kitchenware.
If in doubt, ask the organization what they will and won’t accept. Most charities won’t take the following:
It’s a fact that many organizations simply don’t have enough hands on deck to accomplish all of their goals. If you know of such an organization, your time is one of the greatest gifts you could give.
Not only will you be helping a worthwhile cause, but you could also pick up a few valuable skills along the way. That experience will shine on your resume or college application.
Not sure where to volunteer your time? Try one of these:
Got an old car that you’d like to get rid of? Given the price of vehicles these days, your donation is sure to be greatly appreciated.
Many charities accept cars, trucks, motorcycles, and RVs. Some will take boats and aircraft as well. Certain charities only accept running vehicles, while others will accept vehicles in any condition, working or not.
A few charities that seek vehicle donations include:
Remember, you must complete Section A of Form 8283 to claim your donation on your taxes. If the car is worth over $5,000, you must include an independent appraisal and complete Section B.
You can also donate homes, offices, and land to certain charities, such as Habitat for Humanity and The Nature Conservancy. Remember to request an appraisal of the property and include it with your tax return.
Are you a doctor, lawyer, accountant, or other professional? Donating your time and services is a fantastic way to use your skills while helping your preferred charity.
Many hospitals and medical centers could use a helping hand from skilled nurses, doctors, surgeons, and lab technicians. Doctors Without Borders is another great cause to consider. This organization sends medical professionals to conflict zones and countries struggling with endemic diseases.
If you’re a lawyer, consider joining a pro bono attorney network in your state. Through these networks, you’ll provide free legal advice to people who can’t afford to hire their own lawyers. You can also choose to represent clients in court if you’d like.
Before donating, consider the goal(s) you’d like to meet with your gift. Do you want to get rid of excess stock or clean out your house before a move? Maybe you’re looking for a way to maximize tax deductions. Some businesses also make charitable donations as a way to boost public perception.
Your goal will guide your choice of charity and what you give to it.
Getting others to join your cause is a great way to expand support for your favorite charity. No one will give, though, if they don’t know that charity exists. Here are a few tips for attracting attention to your preferred non-profit organization.
You can put a donation page on your website if you have one, but if you don’t, donation platforms make creating a custom page a snap. Kickstarter, GoFundMe, Patreon, and Indiegogo are a few popular platforms to try.
To create a compelling donation page:
Social media posts have the chance to go viral, making platforms such as Facebook, X (formerly Twitter), Reddit, and Instagram great places to talk up your favorite cause.
However, you can’t simply ask for donations and expect the money to roll in. First, you must understand your audience. Are they wealthy business people or strapped-for-cash college students? For the former, you could suggest cash donations. For the latter, you might have better luck asking your audience to volunteer their time.
Be specific with your question. Instead of writing, “We need money,” for instance, you could write, “We’re trying to raise $5,000 to buy books for the library.”
Include a progress tracker to motivate donors further. Your tracker could say, “We’ve reached $1,000 of our $5,000 goal.”
Donors like to feel appreciated, so be sure to thank anyone who gives a gift, no matter how small. You could send a thoughtful thank-you email or mention the donor on social media. Many organizations also like to send acknowledgment letters in the mail.
Recognizing donors doesn’t just make them feel good; it also boosts the chances they’ll donate again.
If you’re raring to give after learning these best practices for non-monetary donations, reach out to us here at Easy Donation Pickup! There’s no need to drive around town to find a place to donate when we come straight to you.
Schedule your pickup now. We appreciate any donation, no matter how big or small.
