

Congress passed new rules for deducting household goods and clothing donations in 2006. Unless the item is in "good used condition or better" or was donated before Aug. 18, 2006, you won't get the tax deduction. The question, of course, is what "good used condition" means. Who defines it, and what proof is needed?
"It means you can't give away your kids' blue jeans that have holes in the backside," said Clint Stretch, managing principal for tax policy at Deloitte Tax LLP. "If you give trash away, don't try to take a deduction."
Beyond the fact of tax laws, take into consideration the cost that the charity has in disposing of your "trash." This can amount to a significant amount of money paid to waste management companies and city dumps. Also, items that need repair, i.e., appliances, damaged furniture, torn clothing, broken toys, etc. are not usable since most charities do not have the staff or skills to do such repair.
Like NECO, many charities operate thrift stores to cover the operating costs of their ministry. Ask yourself, "Would I buy this if I saw it in their store?", or more important, "Would I give this to a friend in need?" If the answer is "no" then you know what pile it goes into. Keep in mind that your items should be in such a condition that they can be resold to benefit that organization. Always check with NECO or your local charity before donating large items and/or building materials. They can direct you to a more suitable agency to take your donation.
You probably see many donation drop boxes in local parking lots. If you truly want the item to go to your local charity, take it directly to them. Theft is a common problem with these boxes, meaning the agency never even receives what you donated. Many organizations named on those boxes don't even service the needy of your community. If your heart is for your neighbors, donate locally.
So before you re-arrange the next closet or clean out the next drawer, keep in mind exactly what your goal is in donating to a charity. If it is to benefit others and create income for an agency to meet the needs of those less fortunate, it will make your chore a more worthwhile endeavor.