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Our blog provides insights for social impact professionals in business and nonprofits. We offer advice on making the greatest impact in your organization by giving clear real-world advice on important topics of today.

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Does it make financial sense to donate property, cars, art, or jewelry to charity?

10/10/2018

2 Comments

 
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Many people wonder if it makes sense to donate property, cars, or other valuable items to charities in order to receive a tax donation. 
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​Nonprofits are chronically short on cash and always in pursuit of seeking full sustainability. Of course, most charities will accept donations of all kinds but sometimes donations can be more of a hassle than the net benefit. There are horror stories of benefactors donating property, jewelry, art, or cars to a nonprofit where it took more staff time to sell and manage the goods than they received in net contributions. Make sure your donation will be an easy and manageable transaction.

If a charity uses your property, car, art, or valuable items to carry out their programs and services, you may be able to deduct the full “Fair Market Value.” However, you may need an official, written appraisal. If the property, cars, or valuable items are worth more than $5,000 you will need a written appraisal from a qualified appraiser.

On the other hand, if the charity sells your property, car, or valuable items for less than your appraised value, you may only deduct the amount the item was sold for, not the pre-determined market value. Example: If you donate a car to Boys & Girls Club for the estimated value of $3,500 in August but they were only able to sell it for $3,000 in December – then you can only deduct the final sale value of $3,000.

Veer over to the IRS website to learn more before making your big donation:
A Donor's Guide to Donating a Car
Determining the Value of Donated Property


Feel free to reach out to us if you have additional questions or need us to translate some of the IRS technical language. We're also happy to review your pledge and give you guidance on the best course of action. 
2 Comments
Scrap Car Removal GTA link
5/29/2020 07:40:24 am

Good information for people who are skeptical about
donating their car or other assets. This information would help them make the right decision.

Reply
Chance Cook link
8/27/2021 11:44:05 am

Thanks for the tip to make an easy and manageable donation. I'd hate to make my donation a hassle. That would make me feel self-conscious about it for years to come.

Reply



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  • For Businesses
    • Philanthropy Management
    • Corporate Social Investment
    • C-Suite Philanthropy
    • Social Impact Measurement
    • Cause Marketing
    • Public Relations
  • For Nonprofits
    • Fundraising Help
    • Marketing Communications
    • 501c3 Formation
    • How to Start a Nonprofit
  • Insights
    • Blog
    • Case Studies
    • Resources
    • Researching Nonprofits
  • About
    • Our Approach
    • Our Team
    • LinkedIn
    • Contact