Goodwill Calculator
This calculator helps estimate the fair-market value of donated household items or provides a simple business goodwill estimate. Use the itemized method to enter common categories (clothing, electronics, furniture, books, shoes, or an 'other' total). Alternatively, use your donation receipt total or the basic business goodwill method.
Results are informational estimates to help with recordkeeping and tax planning. They are not formal appraisals. For tax reporting and large or unusual donations consult official tax guidance or a qualified appraiser.
Estimate value by entering quantities and per-item fair-market values for common donation categories. Use the 'Other items (total)' field for items not listed.
Inputs
Advanced inputs
Itemized donation inputs
Receipt-based input
Business goodwill inputs
Results
Estimated total fair‑market value (USD)
$26.00
Suggested tax deduction (informational)
$26.00
Estimated program impact (USD)
$15.60
| Output | Value | Unit |
|---|---|---|
| Estimated total fair‑market value (USD) | $26.00 | USD |
| Suggested tax deduction (informational) | $26.00 | USD |
| Estimated program impact (USD) | $15.60 | USD |
Visualization
Methodology
Itemized method multiplies quantity × per-item fair-market value for each category, then sums subtotals to produce a total estimated fair-market value. A fixed internal 'impact factor' approximates program benefit from donated goods; this is an institution-specific estimate and is shown separately.
Receipt-based method uses the total shown on the organization's receipt as the estimated fair-market value. The business goodwill method applies a multiplier to Seller's Discretionary Earnings (SDE) and subtracts net tangible assets to provide a high-level goodwill estimate.
Calculations follow standard numeric safety and traceability practices. Data handling and integrity recommendations are aligned with NIST guidance for trustworthy data and recordkeeping.
Worked examples
Example 1 — Itemized: 3 shirts at $5 each + 2 books at $2 each + other $10 total → Total = (3×5) + (2×2) + 10 = $29.
Example 2 — Receipt: If your donation receipt shows $75, enter $75 to use that as the estimate.
Example 3 — Business goodwill: SDE $80,000 × multiplier 2.0 − tangible assets $20,000 = $140,000 goodwill estimate.
Further resources
Expert Q&A
Is this an official tax valuation?
No. This tool provides informational estimates for recordkeeping and planning. For tax deductions consult IRS rules and, for items or donations above IRS thresholds, seek a qualified appraisal.
When do I need a formal appraisal?
Per IRS guidance, noncash contributions with a claimed value over $500 may require additional forms and documentation. Items or collections with values exceeding $5,000 generally require a qualified appraisal (see IRS Publication 561 and Form 8283 instructions).
How accurate are the per-item default values?
Default per-item values are conservative examples only. Fair-market value depends on condition, age, and market demand. Review item condition and adjust per-item values before finalizing records.
Can I rely on the 'estimated program impact' for official reporting?
The program impact figure is an internal, illustrative estimate and is not an accounting or tax metric. Use only for internal planning or donor communications with appropriate disclaimers.
Is electronic data handled securely?
This tool is informational; deployers should follow NIST SP 800-series recommendations for data integrity and secure handling. Avoid entering sensitive personal or financial data beyond what is necessary for the estimate.
Sources & citations
- IRS — Publication 561, Determining the Value of Donated Property — https://www.irs.gov/pub/irs-pdf/p561.pdf
- IRS — Form 8283 instructions (noncash charitable contributions) — https://www.irs.gov/forms-pubs/about-form-8283
- NIST — National Institute of Standards and Technology — https://www.nist.gov/
- ISO — International Organization for Standardization — https://www.iso.org/
- IEEE — Institute of Electrical and Electronics Engineers — https://www.ieee.org/
- OSHA — Occupational Safety and Health Administration — https://www.osha.gov/