Monetary vs Non-Monetary (Property) Donations

​For tax purposes, donations are essentially grouped into two categories:  1) Monetary  2) Non-Monetary (property). Each are handled differently when it comes to your tax return reporting…

Monetary donations include gifts in the form of cash, check, credit card, Venmo, etc.
 
On the other hand, Non-Monetary donations would be comprised of tangible property like clothing, electronics, furniture, kids’ toys, etc.
 
Deduction Eligibility:
With either type of donation, the contribution must be made to a qualified organization, which generally means the recipient has a tax-exempt status. The IRS has a handy search tool at this link.
 
Gifts (Monetary or Non-Monetary) to individuals are NOT eligible for a tax deduction. That includes GoFundMe gifts since those are essentially established for individuals.
 
If you receive a benefit in exchange for your contribution (merchandise, goods, services, admission to charity/sporting event, etc.), you can only deduct the amount that exceeds the fair market value of the benefit received.
 
It’s advisable to obtain a receipt for all donations.
 
Tax Reporting Differences:
Monetary donations allow a deduction up to 60% of a taxpayer’s adjusted gross income (for 2023 & 2024 tax years), and are reported as an itemized deduction. To report any Monetary donation amount on the tax return, only the donation figure is included, with no other reporting requirements (if audited, the IRS may ask for written record from the recipient organization).
 
As a completely separate deduction type, Non-Monetary donations require specific reporting for donations that exceed $500 in fair market value. For those donations, the tax return requires the taxpayer include the following for each donation date:

1. Date of donation
2. Name & Address of donation location
3. Description (i.e. – clothing, etc.)
4. Total Value of donated goods
   1. Click here for handy worksheet to use for above info

 
But if the total fair market value is under $500, only the figure needs to be entered, similar to Monetary donations.
 
Click here for helpful info on how to value and keep solid records for your property donations.
 
We hope this helps clarify Monetary vs. Non-Monetary Donations!