- How to value non-cash donations to goodwill – itsdeductible.com
- How to organize and compile donations
- Create a spreadsheet on GoogleDrive/iNotes
- Provide a summary to your accountant
“Would you like a receipt today?” You’ve just driven away from a local charity leaving a bag of clothing, toys and a few household items. Should you get the receipt? What are you going to do with it?
Many of us have the opportunity to give cash and non cash items to local and national 501(c)(3) organizations.Tracking those donations can seem like an overwhelming task. Here are a few simple tools to help you get organized and make tax time simpler for you and your tax preparer.
- Keep your giving information in one place – receipts in a file folder, use a Google doc or spreadsheet, utilize your Notes app on your iPhone or use the app/online tool ItsDeductible.com.
- If you gave to an organization through work, make sure to keep your final pay stub for the year with the donation noted.
- Many organizations will provide a year end statement for giving. Keep an eye out for these in the mail in January of the following year.
- Donations of non cash items can be deducted for their current fair market value. Keep a list of the items you donate and use ItsDeductible to value the items.
- Create a summary sheet for your accountant. You know your life better than we do. List out all the cash and non cash donations and provide with your tax documents at tax time.
Charitable donations are great for our communities and can be helpful to reduce taxable income. If you have any questions, please feel free to contact our office for additional resources and ideas.