Returns & CX Apr 10, 2027 5 min read
How to Donate Returned Apparel and Get Tax Credit
Donating returned/excess apparel = goodwill + tax deduction (US: deduct fair market value). Need 501(c)(3) recipient + documentation. Better than landfill, better PR than liquidation.
The Chart
| Recipient | Tax Treatment | Notes |
|---|---|---|
| Goodwill | Deduct FMV | Standard charity, broad acceptance |
| Salvation Army | Deduct FMV | Standard charity |
| Dress for Success | Deduct FMV | Workplace clothing for women |
| Local shelter | Deduct FMV | Community impact |
| Soles4Souls | Deduct FMV | Footwear focus, global impact |
| Clothes-to-Kids | Deduct FMV | Kids' clothing |
FAQs
Documentation required?
IRS Form 8283 if donation > $5,000. Detailed inventory + receipt from charity. Photo evidence helpful. Keep for 7 years.
Fair Market Value definition?
What you'd reasonably sell it for in current condition. Used clothing typically 20-50% of original retail. IRS provides guidelines + many charities provide valuation guides.
Need this on your store?
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