New! Estimate the value of your donation automatically with this handy donation calculator. It also serves as your receipt.
Goodwill Industries of West Michigan is a qualified 501 (c) (3) charitable organization. If you itemize your deductions on your federal tax return, you are entitled to claim a deduction for your donations to Goodwill.
View our donation guidelines for estimated values of your donated items.
Instead of trade-in, consider donating
Sometimes a simple lack of transportation can be the final critical obstacle in a person’s ability to get a job. Goodwill’s Wheels-to-Work Program was created to fill that gap — connecting donated vehicles to low-income persons in need of reliable transportation in order to maintain or obtain employment.
Auto donors can still deduct fair market value if their car is used in the program.
Since new, stricter tax laws took effect on January 1, 2005, autos donated to Goodwill have plummeted. In part, this is due to confusion about the new guidelines. Previously, a donor could deduct the fair market value of a car given to charity. Under the new law, if the claimed value of the donated vehicle exceeds $500 and the item is sold by the charitable organization, the taxpayer deduction is limited to the gross proceeds from the sale. There is, however, a critical exception. Cars selected and used in programs such as Goodwill’s Wheels-to-Work are eligible for the fair market value deduction.
An excerpt from the IRS’ own guidelines regarding auto donations to charities states: “Donors may claim a deduction of the vehicle’s fair market value if the charity donates or sells the vehicle to a needy individual at a significantly below-market price, if the transfer furthers the charitable purpose of helping a poor person in need of a means of transportation.”
Vehicles that are not suitable for the program are sold to the general public and the proceeds are channeled back into Goodwill’s mission. In these instances, donors may only claim the gross proceeds from the sale.