Donated goods are often referred to as "goods in kind". The value of such donations can be used as a tax deduction for I.R.S. purposes, if certain conditions are met. Joy in the Harvest, as a 501c3 approved not-for-profit can receive donated goods and their value can usually be used as a tax deduction.
Joy in the Harvest is a member organization of the Evangelical Council for Financial Accountability. As such, we must follow the established policies and practices of ECFA, which are carefully crafted to avoid any improper abuse of the tax deduction system.
Basically, we are not allowed to place a value on any donation. We can issue an inventory with a detailed description of the goods donated. The donor then sets the value themselves for the goods that are donated and would be responsible to defend their valuation to the IRS.
From our experience in the past, we have a set a policy concerning the issuing of the detailed inventory that can be used as the basis of a tax deduction. Because so many donors are donating items to the container project, if a donor needs to take a tax deduction, the DONOR should prepare a detailed inventory of the goods being donated, complete with descriptions of the goods and their condition at the time of the donation. This inventory must contain the name of the donor who will be credited with donation for tax purposes and the address of the donor. WE ASK THAT THE DONOR INVENTORY BE PRESENTED AT THE TIME THE GOODS ARE DONATED.
A representative of Joy in the Harvest, usually the person running the drop point, will verify the detailed inventory list is accurate as compared with the actual goods being donated. Copies of the inventory will then be sent to Joy in the Harvest USA office where a letter certifying the accuracy of the inventory will be provided and attached to the inventory. The donor can use the detailed inventory, along with our acknowledgment of the donated goods and certification of the inventory, as the basis of a tax deduction.
Because of the high volume of donations, in order to be able to truthfully verify the goods and state accurately their condition, we ask that this process be followed and done AT THE TIME OF THE DONATION. Once the goods are processed for shipment, due to the combining of donations for packing purposes, it is virtually impossible to verify the goods donated and their condition. Thus, in all but extremely unusual cases, the verification of the detailed inventory must take place at the time of the delivery of the goods.
It is the responsibility of the DONOR to provide the detailed inventory (with accurate descriptions of the condition of the goods) that will be used as the basis of the tax deduction. The MUST be presented to Joy in the Harvest at the time of delivery of the donated goods. Joy in the Harvest will only certify the document as being accurate.
Sometimes churches or other organizations, which are religious or not-for-profit, receive donations that are passed along to us. These organizations usually do not need or ask Joy in the Harvest for the paperwork needed for a tax deduction. If you donate your goods to a church and they then donated them to us, please get your tax deduction paperwork directly from the church. It will save us both time and work and may be easier for you, too.