How to Assign a Value to Charitable Gifts
- 1). Determine the value of the donation that you want to make by determining the fair market value. In some cases, such as for paintings, sculptures and similar items, you should have what you want to donate appraised. If the item to be donated is furniture, you may check the current market value, depending on the quality of the item. Consult blue book guides that list the make, model and value by year for cars, aircraft, boats and other items. Kelley Blue Book is also available online and you can easily search through the system to make sure that it is in working condition.
- 2). Write down the amount listed. This will be the value to assign to your charitable gift.
- 3). Request a receipt for items you donate to charity. This will protect you if the Internal Revenue Service conducts an audit on your taxes or that of the organization. This may also help you determine the value of your charitable donation.
- 4). Attach the IRS form 8283 with your tax return and include the name and address of the organization that received your charitable donation. It is often beneficial to take a picture of the property and include a full description of the item.
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