Charitable Contributions: Get A Tax Deduction For Donations

Thanks to the tax deduction for charitable contributions, your generosity towards others can also help you reduce your taxes. There is one potential problem, however: You must itemize to claim this tax benefit.

For the vast majority of taxpayers, that hurdle means you won’t be claiming this deduction for tax years 2024 or 2025.

Tax-deductible donations: You must itemize

Yes, donations can, theoretically, reduce your tax bill. But there’s a big reason most taxpayers won’t realize this benefit on their 2024 or 2025 tax returns: You must itemize your deductions to claim the charitable contribution tax benefit.

While there was a temporary above-the-line deduction for charitable cash contributions for taxpayers who don’t itemize, that temporary tax benefit ended.

And, under current law, it probably won’t make sense for you to itemize. That’s because you must choose between claiming the standard deduction and itemizing your deductions. Your itemized deductions need to add up to a higher dollar amount than the standard deduction for it to make sense to itemize, because the highest dollar amount will reduce your taxable income, and thus your tax bill, the most.

The standard deduction is currently $14,600 for single filers and $29,200 for married filing jointly filers for tax year 2024 (those amounts rise to $15,000 for single filers and $30,000 for married filing jointly filers for tax year 2025).

The standard deduction amounts were nearly doubled by the Tax Cuts and Jobs Act of 2017, and ever since, the hurdle to claim itemized deductions — including charitable contributions — is too high “to actually get a true benefit for most peoples’ taxes,” says Nick Fazio, an associate wealth advisor and certified public accountant with Regent Peak Wealth Advisors.

“If you had no other itemized deductions and you gave $30,000 to charity in this year, you’re still no better off than if you just take the standard deduction,” Fazio says, referring to the $30,000 standard deduction for married couples in 2025.

Only if your donations and other itemized deductions add up to more than $30,000 (as a married couple filing jointly) do you start to see any benefit from itemizing.

It’s no real surprise, then, that more than 90 percent of tax returns claimed the standard deduction in 2022, according to the most recent IRS data.

How the charitable donation tax deduction works

To claim the tax deduction for charitable donations, taxpayers must itemize their charitable contributions on Form 1040, Schedule A.

In general, the amount of your charitable contribution deduction can’t be more than 60 percent of your adjusted gross income (AGI), but there are 20 percent, 30 percent and 50 percent limits for certain types of organizations and certain types of donations.

If your donations total less than 20 percent of your AGI, you don’t need to worry about the complex rules relating to the other limits.

And they are complex. For example, non-cash contributions, such as clothing and appliances, are limited to 50 percent of AGI. Capital gain property donated at fair market value can’t exceed 30 percent of AGI, and the same is generally true of donations to a private foundation. Other types of donations max out at 20 percent of AGI. Contribution amounts in excess of these limits can be carried forward on future tax returns for up to five years.

If you’re hoping to claim this deduction, check out this IRS guide to charitable contributions or consult a tax professional.

Alternatively, any reputable tax software program that supports itemized deductions will walk you through the steps to see if you qualify to deduct your charitable contributions.

Depending on how much you’ve donated, as well as how much your other itemized deductions add up to, it may make more sense to forgo itemizing — and forgo claiming your charitable contributions — in favor of claiming the standard deduction instead.

Standard deduction amounts

How to claim the deduction for charitable donations

If all of your tax deductions combined add up to more than your standard deduction amount, then it pays to itemize.

Itemizing deductions involves filling out Schedule A, with charitable deductions accounted for in the section on “Gifts to Charity,” lines 11 through 14. The number on line 17 of Schedule A, your total itemized deductions, then transfers to line 12 of Form 1040.

Other allowable deductions include eligible medical and dental expenses, state and local taxes (including real estate and personal property taxes), home mortgage interest, investment interest, and casualty losses from a federally declared disaster.

If these and other allowable deductions add up to more than the standard deduction amount, take advantage of them by itemizing your deductions.

Rules for claiming the deduction

Must be a qualifying organization

Charitable donations must be made to tax-exempt, 501(c)3 organizations to qualify as a tax deduction.

A legitimate charitable organization should be happy to provide proof of its tax-exempt status, such as by producing its Form 990. Be careful not to be taken in by scammers. Ask for proof of an organization’s tax-exempt status.

In some cases, even legitimate causes won’t qualify for a charitable donation. For example, donations given to individuals through GoFundMe and other platforms that are commonly used for fundraising efforts are not tax deductible. However, if you donate to a qualified charitable organization on GoFundMe, that generally will qualify as a tax-deductible donation.

Keep in mind that donations to political organizations are not tax deductible, because political organizations, parties and campaigns aren’t qualified charitable organizations.

The IRS provides a tool, Tax Exempt Organization Search, where you can confirm the status of a tax-exempt organization.

Other online databases to check include GuideStar and Charity Navigator.

The IRS considers the following types of organizations eligible for tax-deductible donations:

• Churches, synagogues, temples, mosques, and other religious organizations.

• Federal, state and local governments for contributions meant for the public good.

• Nonprofit schools and hospitals.

• Organizations such as the Salvation Army, American Red Cross, Goodwill Industries and United Way.

• War veterans’ groups.

For a complete list of types of qualified organizations, check out IRS Publication 526.

You must document your charitable contributions

The IRS requires you to keep records of cash contributions (your bank statement will do) and payroll deductions. If you donate $250 or more, the charity generally sends a written acknowledgment of the amount you contributed before you file your return. Be sure to ask for it if you don’t receive one.

If you donate non-cash contributions of less than $500, you must get receipts from the organization substantiating your donation. Often, charities such as Goodwill Industries will provide a form inscribed with its name and address on which you can list the items donated and the date it was contributed. The IRS requires that the items you donate be in good condition; this rule is an attempt to prevent donors from giving away worthless items and exaggerating their value to inflate the deduction amount on their tax returns.

Consult a donation value guide to get a good idea of what your donated items might be worth.

Non-cash contributions that exceed $500 require you to fill out and attach Form 8283 to your return. Any property valued in excess of $5,000 must be appraised by a qualified organization.

Keep a copy of all your receipts in case the IRS comes calling to verify any charitable deductions you claim on your federal tax return.

Expenses from volunteer efforts count

While you won’t get a deduction for the value of your time or services when volunteering, any purchases made to benefit an organization can be deducted if they’re not reimbursed. Keep a record of items you buy to benefit nonprofits, as well as receipts.

Likewise, actual costs for gas and oil can be deducted for activities such as travel to charitable events or to a donation site. Or you can take the standard mileage deduction, which has been stuck at 14 cents per mile for many years.

Items received in exchange reduce your deduction

If you receive anything in return for your donation, the value of that item can’t be included in your deduction. Here’s an example from the IRS: if you give $100 to a charity but receive a $40 concert ticket in return, your deductible charitable contribution is $60.

Strategies for taking the charitable deduction

Bunch your deductions

It may not be possible to donate enough each year to take advantage of the charitable deduction. One strategy is to consolidate — or “bunch” deductions — from multiple tax years into one year.

For instance, Fazio says that instead of donating $5,000 every year for 10 years, you may want to save up $50,000 over 10 years and make the donation in one tax year. That way, you will have donated enough to make itemizing your deductions a real benefit.

Give money to donor-advised funds

If you put money in a donor-advised fund by Dec. 31, you can take an immediate deduction and decide later to which organization you wish to direct the proceeds.

This also gives you the opportunity to augment your donations in a particular tax year for tax-deduction purposes.