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Last updated on December 16th, 2023 at 01:39 pm
The end of the year is the perfect time for donating your used stuff in good condition. In the last few weeks, I’ve received emails from different organizations asking for donations of clothing, housewares, and toys. Many items you donate can be deducted from your taxes, so donate those items before the end of the physical year!
This will guide you through donating your used stuff and give you a breakdown of tracking donations & items to declutter.
First, donate or sell?
Here are 3 reasons why it’s better to donate rather than sell:
- It takes less time, effort, & frustration to give away items. Think of all the effort it takes to post something online, then package it up and take it to the post office, or make time to meet with someone to pick it up.
- Giving feels good! Generosity breeds joy when you give to organizations and causes you believe in, knowing you are helping to bless others.
- Finally, when you donate, many items can be deducted from your taxes.
(If you’re really interested in selling, here’s a post from Making Sense of Cents about how to sell your stuff.)
Let’s dig into the logistics of reason #3.
What you can deduct
According to IRS publication 526, you can only deduct clothing or household items if the items are in good used condition or better. These items can be deducted at fair market value (or what someone would pay if you were to sell the item instead of donating it).
How to check donation values
Many organizations offer donation value guides on their websites. For example, the Salvation Army has a full page dedicated to it here. Goodwill has a downloadable PDF guide as well.
If you DIY your taxes, tax software like TurboTax will have you enter each donation and give you the donation value.
How to track your donations
It does take time and effort to keep track of your donations. Depending on how much you donate, it may be worthwhile to keep track!
In the past, I’ve simply created a list of everything I donated in my Notes app. I try to be very specific because the values of items are different. For example, there’s a difference in fair market value for a women’s casual dress versus a women’s evening dress.
If you prefer, I have a template you can fill in! Get the Clutter Removal Kit which includes a Donation Tracker here.
Organization for donating your used stuff
At the end of the year, you’ll see a lot of local charities requesting donations. In this post, I list organizations that will pick up your donations, as well as item-specific organizations. (Note: not all items are tax deductible).
As mentioned in that same post, do your research to ensure that the organization you’re donating to aligns with your values.
What to declutter
Where should you start decluttering at the end of the year? Here are the areas I recommend:
Clothes/Coat Closet: Many organizations request gently used coats and winter wear for the cold winter months. A coat closet is a great place to begin. (You can download my Closet Organizing Cheatsheet here –no sign-up required.)
Toys: Most plastic toys are not biodegradable. If you have toys around your home that are in good shape that your kids aren’t playing with, donate them to a local thrift store. Here’s a post on how to declutter kids’ toys >>>
Decor: Many thrift stores carry decor items that people hunt for. If you have items that aren’t meaningful or useful, pass them on. Here’s a free 5-step guide to decluttering practically anything to help you >>>
Books: We’re big fans of thrift books around here. Since books tend to stack up, we purge the ones that we don’t truly love and rejoice in the fact that someone else will treasure them. Here’s a post to help you with letting go of books >>>
Donating your used stuff
Many people struggle with feeling wasteful as they declutter. However, if you keep in mind that your gently used items are going to a good cause, letting go won’t be as difficult. Making time to do end-of-the-year donating and decluttering will benefit you and others!
You can get the Clutter Removal Kit & Donation Tracker here >>>
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