This is a good question. We have a new Savers’ store that opened in Santa Clarita, CA, in November 2025. My initial research into this store led me to conclude that, because it is a for-profit entity, donations would not be tax-deductible.
However, upon further review, each of these stores partners with a charitable entity. For example, donations to our local Santa Clarita, California Savers go to that location’s partner, the American Red Cross. Therefore, donations may be deductible if they meet the requirements for property donations.
The following as excerpt from the Savers’ website:
“We are a for-profit company that champions reuse. Shopping in our stores doesn’t support any nonprofit, but donating your reusable goods does. We pay nonprofits for your stuff, helping them fund programs in our communities.”
“We accept donations of used goods on behalf of our nonprofit partners. If you donated to a nonprofit at one of our locations, you are able to access an electronic copy of our nonprofit partners’ tax receipt below. Please ensure that you select the correct receipt for the nonprofit at the location at which you donated.“
Savers acts as a commercial fundraiser for non-profits like the American Red Cross. You are actually deducting the value of the goods you gave to the nonprofit partner, not Savers itself. You must follow IRS guidelines, value items correctly, and keep good records.
For example, assume I dropped off property at our local Savers donation center. I would list American Red Cross as the charitable entity receiving my donation on my tax return.
On its website, Savers lists all its store locations and the specific charity with which it has a partnership. This information is available at:
https://www.savers.com/tax
Savers will not issue any receipt when you drop off merchandise (clothes, etc.). Instead, after the drop-off, go to the website above, select your Savers drop-off location, and complete the receipt that appears on the screen for the partner charity.
OK, putting on my former IRS Agent hat, I see an issue arising from an audit perspective. Since these receipts are self-prepared, taxpayers need additional evidence of their actual donation. For example, have someone take a date-stamped photo of your vehicle at the drop-off site, with the bag (s) of clothing on the ground in front of the drop-off site sign.
Further, as with any property donation, create a detailed list of the specific items of clothing or donated products, including their description, estimated cost, condition, and the fair market value (what a thrift store would sell them for on its floor). Both the Salvation Army and Goodwill publish guidelines on their respective websites for the value of used clothing and other products that the IRS typically accepts.
Remember that you must establish that the clothing and products are in good, usable condition. When I make a property donation of clothes, for example, I will lay them out on the back of a sofa or on a bed and take a picture of the items. This helps show that they appear to be in good condition. It is a bit of work, but it can make the difference in keeping or losing the deduction in an audit.