For thrift stores, charity shops, furniture banks and rummage sales
Thrift store donation receipts: describe the bags, never the value
A donation door sees hundreds of gifts a week, and every one of them deserves a receipt that will hold up at tax time. The rules are simple once stated: the receipt comes from you, it describes what you received, it says no goods or services were provided, and it never puts a dollar figure on the items — the donor values them at thrift-shop prices under Publication 561. Clothing and household items must be in good used condition or better to be deductible at all (Section 170(f)(16)). Four templates below: the drop-off receipt pad, the furniture pickup letter, the year-end summary for your regulars, and the letter for a retailer donating overstock.
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What the donor needs from you, by situation
| Situation | Donor's side | What you provide |
|---|---|---|
| Bags dropped at an attended door, any value | Receipt from donee required (Reg. §1.170A-16(a)); values items at thrift-shop prices | Drop-off receipt: name, date, location, description, no-goods statement (template 1) |
| After-hours unattended drop box | Receipt excused as impractical; donor keeps own written record | Nothing required; a sign with your name, EIN and the good-used-condition reminder helps |
| Gift the donor values at $250 or more | Needs a contemporaneous written acknowledgment (§170(f)(8)) | The same receipt — as long as it carries the no-goods-or-services sentence |
| Furniture or appliance home pickup | Same rules; pickup fee is not a gift | Pickup acknowledgment listing items; disclose any fee (template 2) |
| Total non-cash gifts for the year over $500 | Files Form 8283, Section A | Nothing to sign; the year-end summary helps the donor complete it (template 3) |
| One item or group of similar items over $5,000 | Qualified appraisal + Form 8283, Section B | Sign the donee acknowledgment on Section B (receipt and date, not value); file Form 8282 if sold within 3 years |
| Clothing/household item not in good used condition | No deduction (§170(f)(16)) unless a single item over $500 with an appraisal | Receipt describes it anyway; you do not grade condition |
| Register round-up | Cash gift; needs a bank record or written communication from you | Register receipt showing the donation line with your name, date and amount |
| Shopper buys an item | Not a contribution; no deduction | Sales receipt only |
| Retailer donates new overstock to be resold | Deducts basis; §170(e)(3) enhanced deduction unavailable because goods are sold | Corporate acknowledgment describing goods, no value (template 4) |
Drop-off receipt pad
The receipt your attendant hands over with every drop-off: your name, address and EIN, a date line, checkbox item lines the donor can complete, the no-goods-or-services statement, the no-value disclaimer, and the good-used-condition and Form 8283 reminders. Print two to a page or load it into your receipt printer.
[Organization name] — [Store or donation center name] [Street address, City, State ZIP] EIN [00-0000000] · [phone / website] DONATION RECEIPT Date: [MM/DD/YYYY] Receipt no. [0001234] Received from: [Donor name] Address (optional): [Donor address] Items received (description only — no values are assigned by [Organization name]): [ 3 ] bags of clothing [ 1 ] box of shoes [ ] bags of linens / bedding [ ] boxes of books / media [ ] box of kitchen items [ ] small appliances [ ] toys / games [ ] furniture: [describe] [ ] other: [describe] No goods or services were provided in exchange for this contribution. [Organization name] is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. We do not value donated property; the fair market value is determined by you. Clothing and household items are deductible only if they are in good used condition or better (IRC §170(f)(16)). If your total non-cash gifts for the year exceed $500, attach Form 8283 to your return; see IRS Publication 561 for thrift-shop valuation guidance. Received by: [attendant initials] Thank you for supporting [mission in a few words].
Furniture and appliance pickup acknowledgment
For scheduled home pickups: lists each piece collected, discloses any pickup fee as a payment for services, states no value and the good-used-condition rule, and tells the donor about Form 8283 Sections A and B. Mail or email it after the truck returns.
[Organization name] [Mailing address] EIN [00-0000000] [Date] Dear [Donor name], Thank you for your donation to [Organization name]. On [date of pickup] our crew collected the following items from [pickup address]: • [Three-seat fabric sofa, brown] • [Queen mattress, box spring and metal bed frame] • [Oak dining table with six chairs] • [Two boxes of kitchen items; four bags of clothing] No goods or services were provided in exchange for this contribution. [If a pickup fee was charged: You paid a pickup fee of $(amount), which is a payment for services and is not part of your contribution.] [Organization name] does not assign a value to donated property; you determine the fair market value — for used furniture and household items, what a thrift shop would charge (IRS Publication 561). Items you deduct must be in good used condition or better. If your non-cash gifts for the year total more than $500, attach Form 8283, Section A, to your return; if you claim more than $5,000 for any single item or group of similar items, you will need a qualified appraisal and our signature on Section B — please contact us. Your furniture will be sold in our [store name] to fund [program]. Thank you for making that possible. With gratitude, [Signer name] [Title]
Year-end summary for a repeat donor
Your regulars drop off every month and lose the slips. One letter lists each date, description and receipt number for the year, repeats the no-goods statement for all of them, and gives the Form 8283 reminders — so they can file and you can thank them for what the proceeds did.
[Organization name] [Mailing address] EIN [00-0000000] [Date] Dear [Donor name], Thank you for the many donations you brought to [Organization name] during [year]. For your records, this letter summarizes what we received. We describe donated property but do not value it; the fair market value of each gift is determined by you. [01/14/2026] [2 bags of clothing, 1 box of shoes] Receipt [0001234] [03/02/2026] [Box of books, small kitchen appliances] Receipt [0001311] [06/20/2026] [Children's clothing and toys, 3 bags] Receipt [0001502] [11/08/2026] [Winter coats (6), blankets (4)] Receipt [0001877] No goods or services were provided in exchange for any of these contributions. A reminder for your tax return: clothing and household items are deductible only if in good used condition or better; if the total of your non-cash gifts for [year] exceeds $500, attach Form 8283, Section A; a group of similar items valued over $5,000 requires a qualified appraisal and Section B. IRS Publication 561 explains thrift-shop valuation. Every bag you brought was sorted, priced and sold by our volunteers, and the proceeds funded [program result]. Thank you. With gratitude, [Signer name] [Title] [Organization name] is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.
Retailer or business donating overstock
For a company giving new merchandise you will resell: describes the goods by reference to their packing list, handles sponsor recognition if any, states no value, and notes that the enhanced inventory deduction does not apply to goods that will be sold — so nobody is surprised at tax time.
[Organization name] [Mailing address] EIN [00-0000000] [Date] [Contact name] [Company name] [Company address] Dear [Contact name], Thank you for [Company name]'s donation to [Organization name], received on [date]: [Four pallets of new, overstock apparel — approximately 1,200 units, per your packing list dated (date)] [Twelve boxed small kitchen appliances, new in box] No goods or services were provided in exchange for this contribution. [If any were: In exchange, (Company name) received (sponsor recognition / description) with an estimated fair market value of $(value).] [Organization name] does not assign a value to donated property; the amount of any deduction is determined by the donor under the rules for contributions of inventory. Please note that the merchandise will be sold in our [store name] to support [program]; because it will be sold rather than used solely for the care of the ill, the needy or infants, the enhanced inventory deduction under IRC §170(e)(3) does not apply, and the deduction is generally limited to your basis in the goods. Your tax adviser can confirm the treatment. If a Form 8283, Section B donee acknowledgment is required for a claim over $5,000, send us the form and we will sign it promptly. [Organization name] is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Please keep this letter with your records. With gratitude, [Signer name] [Title]
Clothing and household rows in the generator
Paste drop-offs as in-kind rows: Name, Date and a Description such as "3 bags of clothing and a box of shoes", with no Amount. The generator writes the describe-don't-value letter with the no-goods statement, and on clothing, furniture and household-item rows it adds a note about the Section 170(f)(16) good-used-condition rule, Publication 561 thrift-shop valuation and the Form 8283 thresholds. Vehicles, food, art and securities get their own notes instead. For donors who come every month, the per-donor mode produces one year-end summary that lists each visit.
Thrift store donation questions
Do we have to give a receipt for every bag of clothes dropped off?
If a staff member or volunteer is there, yes — give one. The donor needs a receipt from you for any non-cash gift, whatever the value (Treas. Reg. §1.170A-16(a)): your name, the date and location, and a description of the property. The only exception is when getting a receipt is impractical, such as an unattended after-hours drop box; then the donor relies on their own written records. A pre-printed receipt pad with your name, address and EIN, a date line, item lines and the no-goods statement covers every drop-off.
Can the donor fill in the item description themselves?
The receipt must come from you, but the description is commonly written in by the donor at the door while the attendant dates and initials it — that is the standard thrift-store receipt. Keep the description reasonable ("3 bags of clothing, 1 box of shoes"), never write a value, and never sign a receipt for items you did not actually receive or for a blank that the donor will complete later with no witness.
Why must the receipt never state a value?
The donor, not the charity, determines fair market value (IRS Publication 561 — for used clothing and household goods, the price a thrift shop would charge). A value written by the charity is not an appraisal and can cause the donor's deduction to be challenged while suggesting you vouched for it. You may hand out a general valuation guide with price ranges, as many large thrift organizations do, as long as the receipt itself only describes.
What is the "good used condition or better" rule?
IRC §170(f)(16) denies any deduction for clothing or a household item that is not in good used condition or better. The one exception is a single item for which the donor claims more than $500 and attaches a qualified appraisal. Household items means furniture, furnishings, electronics, appliances, linens and similar items — not food, art, antiques, jewelry, gems or collections. Your receipt can remind donors of the rule; you are not required to grade the items.
When does the $250 acknowledgment rule apply to a thrift donation?
Section 170(f)(8) requires a contemporaneous written acknowledgment — description of the property and the goods-or-services statement — for any single contribution the donor values at $250 or more. Because you do not know what the donor will claim, the safest practice is to put the no-goods-or-services sentence on every receipt. Then every drop-off receipt already satisfies the $250 rule.
When do donors need Form 8283, and when do we sign it?
A donor whose total non-cash gifts for the year exceed $500 files Form 8283, Section A, listing you as the donee — no signature from you. If the donor claims more than $5,000 for one item or a group of similar items (for example, all the clothing given in a year), they need a qualified appraisal and your signature in the donee acknowledgment part of Section B. Signing acknowledges receipt and the date, not the value. Keep a copy: it is what triggers Form 8282 if you sell that property within three years.
Do we file Form 8282 every time we sell donated items?
No. Form 8282 applies only to "charitable deduction property" — items for which you signed Form 8283, Section B (claimed over $5,000) — that you sell, exchange or otherwise dispose of within three years, and it is due within 125 days of the disposition, with a copy to the donor. Ordinary rack goods that never went through Section B are not covered, and even Section B property is exempt if the appraisal showed the individual item at $500 or less, or if you consumed or distributed it for your charitable purpose.
Is thrift-store income taxable as unrelated business income?
Selling merchandise that was substantially all donated is specifically excluded from the definition of an unrelated trade or business (IRC §513(a)(3)), so a charity shop stocked with donated goods does not generate UBIT. Mixing in purchased new goods for resale, or a consignment arrangement where donors are paid a share, changes the analysis and deserves advice from your accountant.
A customer rounds up their purchase at the register. Is that a donation?
Yes — the round-up is a cash contribution from the customer, while the purchase itself is not a gift. For a deduction of any amount the customer needs a bank record or a written communication from you showing your name, the date and the amount (IRC §170(f)(17)); a register receipt that prints the donation on its own line as "Donation to [Organization]" with the date and amount serves that purpose. Round-ups almost never reach $250, so no separate acknowledgment letter is needed.
Shoppers ask for a receipt for what they bought. Is a purchase deductible?
No. Buying at a thrift store is a purchase at the price you set, not a contribution, even though the proceeds support your mission — there is no excess over fair market value to deduct. Give a normal sales receipt, not a donation receipt. The exception is a deliberate overpayment the shopper designates as a gift, which you treat like a round-up.
A retailer donates pallets of new overstock for our store. Any special rules?
A business donating inventory may generally deduct its basis (cost), not retail value. The enhanced deduction in IRC §170(e)(3) is available only when the charity uses the property solely for the care of the ill, the needy or infants and does not transfer it for money — goods you will sell in a thrift store do not qualify, so say so in the letter and let the company's tax adviser handle the computation. Your acknowledgment still describes the goods, states no goods or services (or lists any sponsor recognition), and never values them.
We throw away or recycle items we cannot sell. Does that affect the donor?
Not their deduction: it depends on the item's condition and value when donated, not on what you did with it afterward (unless it was Section B property, which triggers Form 8282). Your receipt describes what you received at the door. Many stores add a line such as "items that cannot be sold are recycled or responsibly discarded" so donors are not surprised, and to encourage gifts in good used condition.
Does the generator handle thrift-store receipts?
Paste rows with Name, Date and a Description such as "3 bags of clothing and a box of shoes" with no Amount. The generator writes the describe-don't-value acknowledgment with the no-goods statement, and on clothing, furniture and household-item rows adds a note about §170(f)(16) good-used-condition, Publication 561 thrift-shop valuation and the Form 8283 thresholds, so you can paste the reminder into the letter if you like. For a repeat donor choose the per-donor mode to get one year-end summary listing every drop-off.
General information based on Internal Revenue Code §§170(f)(8), 170(f)(11), 170(f)(16), 170(f)(17), 170(e)(3), 513(a)(3) and 6050L; Treas. Reg. §§1.170A-13 and 1.170A-16; Forms 8283 and 8282 and their instructions; and IRS Publications 526, 561 and 1771. Not legal, tax or accounting advice.