What is a 501(c)(3)
Being “501(c)(3)” means that a particular nonprofit organization has been approved by the Internal Revenue Service (IRS) as a tax-exempt, charitable organization. “Charitable” is broadly defined as being established for purposes that are religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals and children.
What is a charitable donation?
A charitable donation is a gift of money or goods to a tax-exempt organization that can reduce your taxable income.
To claim a deduction for charitable donations on your taxes, you must have donated to an IRS-recognized charity and received nothing in return for your gift. Donated to a friend’s GoFundMe? That is typically not tax-deductible.
How to Put a Value on Donated Goods
The IRS requires donors to determine the value of their donations for tax purposes. The value of donated items is usually the fair market value (FMV), which is the price a willing buyer would pay for them. However, the FMV is not the same as the original purchase price. Instead, it’s the estimated resale value or replacement cost of the item in its current condition.
When determining the value of donated items, you can consider many factors, including:
Condition: How well the item is maintained
- Age: How old the item is
- Quality: How good the item is
- Style: What style the item is
- Use: What the item is used for
- Scarcity: How rare the item is
- Market demand: How much people want the item
You can also consider recent transactions involving similar items, such as sales on eBay, Craigslist, or at local thrift stores. For property donations worth $5,000 or more, you’ll need to get a formal appraisal from a qualified appraiser. You can also use tax-preparation software to get estimated values for some items, such as clothing and household goods.
If you don’t know what your donate would be valued, NVISIM can help you determine the value of your donation.
Once you’ve determined the value of your donation, you can deduct it from your taxes by itemizing deductions on your Schedule A. You should keep the information about your donation with your personal tax records
NVIS International Ministries, Inc. (INISIM)
As a 501(c)(3) Non-Profit Organization, any charitable donation to NVIS International Ministries, Inc or to our DBA, New Vision International School (NVIS) can be a tax-deduction. NVISIM relies on your support in order for us to continue our mission of to empower women and children through God, Education, and Love.
When you donate money or goods to NVISIM, you will receive a Contribution or In-kind Donation Letter for your financial or goods donation. This letter can be used for your tax deduction.