Non‑Cash Gifts to Charity: Types, Tax Benefits & How to Donate

When you hear the term non cash gifts, you might picture a box of old clothes or a used sofa being handed over at a local shelter. But the world of in‑kind giving is far wider - and it can be just as rewarding, tax‑friendly, and impactful as writing a check. This guide walks you through everything you need to know: from what counts as a non‑cash gift, to how to value it, to the paperwork that keeps the IRS happy.

Key Takeaways

• Non‑cash gifts include physical items, securities, real estate, and even donated services.
• The fair market value (FMV) determines the deduction you can claim.
• Donations over $500 generally require IRS Form 8283; items over $5,000 need a qualified appraisal.
• Only contributions to qualified charitable organizations are deductible.
• A solid checklist helps you avoid common pitfalls and keep your records audit‑ready.

What Counts as a Non‑Cash Gift?

Non-cash gift is an item, property, or service donated to a charity instead of money. The IRS recognizes these as "in‑kind" contributions, and they can be just as valuable as cash. The key is that the donor must receive a charitable contribution receipt that documents the donation.

Common Types of Non‑Cash Gifts

Here are the most frequent categories you’ll encounter at fund‑raisers, thrift stores, and online donation portals:

• Clothing and household goods - everything from jackets to kitchenware.
• Furniture - sofas, dining tables, office desks.
• Vehicles - cars, motorcycles, boats.
• Securities - stocks, bonds, mutual fund shares.
• Real estate - residential or commercial property.
• Artwork and collectibles - paintings, sculptures, rare coins.
• Professional services - pro‑bono legal advice, consulting hours.

How to Value Your In‑Kind Donation

Unlike cash, the deduction hinges on the fair market value (FMV) of the item at the time of donation.

**Simple items (clothing, small household goods)** - Use the “sale price you could reasonably expect” method. Look at comparable listings on eBay or local classifieds. If the item would sell for $30, that’s your FMV.

**Higher‑value assets (vehicles, securities, real estate)** - Follow these steps:

1. Obtain an independent appraisal from a qualified professional.
2. Make sure the appraisal includes a description, condition, and the method used to determine FMV.
3. Keep the appraisal attached to your tax records; the IRS can request it years later.

**Publicly traded securities** - Use the average of the high and low price on the donation date. Most brokerage statements already list this figure.

Tax Paperwork You Need

Paperwork varies by donation value:

The cornerstone document is IRS Form 8283. Charities must sign the form, confirming they received the property. Keep a copy for at least three years.

Best Practices & Common Pitfalls

Even seasoned donors stumble over a few avoidable mistakes. Here’s a quick rundown:

• Don’t overestimate FMV. The IRS can disallow a deduction if the value seems inflated.
• Verify the organization’s status. Only qualified charitable organization (501(c)(3) in the U.S.) makes your gift deductible.
• Keep every receipt. Even a handwritten note works if it shows the date, description, and donor’s name.
• Watch out for “use‑it‑or‑lose‑it” rules. Some charities require the donated goods to be used within a certain timeframe for the deduction to hold.
• Know the deduction limits. Generally, you can deduct up to 50% of your adjusted gross income (AGI) for most property, but the limit drops to 30% or 20% for certain assets like appreciated securities.

Donor Checklist: Stay Audit‑Ready

1. Confirm the charity’s 501(c)(3) status.
2. Document the item’s condition and description.
3. Determine FMV using comparable sales or a qualified appraisal.
4. Obtain a written receipt signed by the charity.
5. Complete IRS Form 8283 if FMV exceeds $500.
6. Attach any required appraisals (for items > $5,000).
7. File the forms with your tax return and keep copies for three years.

Frequently Asked Questions