Donations are the lifeline of our organization and monetary donations are no exception. Without your generous contributions, our organization wouldn’t exist and we would no longer be able to provide Arizonans with no-cost skills training and resources to help them obtain meaningful employment.
Monetary donations are an investment in a person’s future. We couldn’t do it without our community of Goodwill supporters who back our mission of empowering individuals, strengthening families, and building stronger communities.
What is the difference between a tax credit and tax deduction?
A tax credit reduces the bill you pay, while a tax deduction reduces the amount of taxable income. Tax credits are dollar-for-dollar. So, if your credit is valued at $400 then your tax bill will be lowered by $400. Tax deductions lessen the total income amount you pay taxes on by the percentage of your highest federal income tax bracket. For example, a $1,000 deduction for someone who is in the 22% tax bracket will save $220.
Are my Goodwill donations tax deductible?
Monetary donations are eligible for a tax credit, while clothing and other items donated may be tax deductible.
What is the Charitable Tax Credit?
When you direct your charitable tax donations to Goodwill of Central and Northern Arizona, you can receive a dollar-for-dollar tax credit on your Arizona state income tax return. Essentially, you’re redirecting your dollars from the state to support individuals and families in your community.
Here’s how the tax credit works:
- You owe $1,000 in state income tax.
- You donate $400 to Goodwill.
- You subtract $400 from your tax bill.
- You pay the state only $600 in state income tax.
- You pay less taxes to the state and directly impact the community.
The Charitable Tax Credit is a charitable contribution you can give to qualifying Arizona charitable organizations. Goodwill of Central and Northern Arizona is an approved recipient. You can receive a dollar-for-dollar tax credit on your Arizona state income tax return while helping Arizonans achieve meaningful employment, at no additional cost to you. Your gift goes directly to Goodwill instead of the state.
How much of my donation is eligible for the tax credit?
The limits are $400 for individuals and $800 for married couples filing jointly. However, smaller donations are allowed. Consult your tax advisor for more information.
Can I donate clothing to receive the tax credit?
No. Only cash contributions qualify for the Charitable Tax Credit.
How do I make a monetary donation?
By filling out this donation form, you join our community of Goodwill supporters. After submitting the form, you will receive an emailed receipt detailing your monetary donation.
Tax Deductible Donations
In addition to monetary donations, you can also support Goodwill of Central and Northern Arizona by dropping off your used clothing, furniture or other goods to a Goodwill location. These items may qualify for a tax deduction, which is different than the tax credit you receive for your monetary donation.
Any time you make a charitable donation, it’s recommended that you keep record of it. Make sure to get a receipt when you drop off your gently used items at Goodwill. It’s also important to know that there are separate requirements needed to prove your donations. Depending on the fair market value of the item you’ve donated, you’ll need to provide a receipt as well as documentation if that amount exceeds $250. Learn more about additional tax requirements for Goodwill donations here.
Tax deductions can be tricky, that’s why it’s important to consult with your tax professional rather than trying to figure out how much you can claim for donations on your own. There may be restrictions or exemptions you are not aware of that a tax professional can help you decipher.
Donating a Vehicle to Goodwill
When you donate your car to a qualified Arizona charity like Goodwill, you can use that vehicle donation as a tax deduction. This is a big reason why many people choose to donate their car to charity. If you’re thinking about donating your car to Goodwill of Central and Northern Arizona, here’s how.
- To get started, call us at (602) 513-8413. We’ll arrange the towing of your car at no cost to you, anywhere in the Valley. We accept most cars, trucks, trailers, RVs, motorcycles, boats, vans, motorhomes and even airplanes. Abandoned cars and those that have failed an emission test are also accepted.
- Consult with a tax advisor to determine the fair market value of your vehicle, which will be used to determine the tax deduction. Fair market value is the amount a buyer would be willing to pay for the car. Read the IRS guide to donating a vehicle for more information.
- Goodwill will send you a tax receipt in the mail a few days after your car has been donated. Take this receipt to your tax advisor to claim a charitable contribution deduction. You can then use that paperwork to deduct the car on your taxes.
Keep a record of your tax paperwork for your personal files. Also, don’t forget to notify the DMV with a sold notice within 10 days after you donate your vehicle.
When you donate your car to Goodwill, we auction it for sale, depending on what sort of condition it’s in when we receive it. Then, we take the resulting funds and invest them into community programs that help local members of your community.
Donating to your local Goodwill has never been easier. There are now more Goodwill donation centers for you to donate to than ever before! Thanks to your donations and your goodwill, you help individuals find a job, and together, through the support of our no-cost career services, we are preparing individuals to achieve self-sufficiency. This helps us to carry on the Goodwill legacy as we work toward ending poverty through the power of work.
Goodwill Industries of Central and Northern Arizona, Inc. does not offer legal or tax advice. Always check with a qualified and licensed professional regarding all matters related to tax or legal issues.
