A charitable donation tax deduction can help you lower your tax bill while simultaneously supporting a worthwhile cause.
Tax-deductible charitable contributions include goods, cash, and property donated to a qualified 501(c)(3) organization. To claim a tax write-off on your tax return, there are several rules to follow and boxes to check.
There are also some rule changes, which President Donald Trump enacted in the federal tax cuts and spending package dubbed the ‘big beautiful bill,’ which will impact taxpayers and charitable giving next year.
Here’s what you need to know about charitable donations and your taxes.
Which charitable donations are tax-deductible?
Even though your donation may be used for a good cause, that doesn't necessarily mean that you can deduct it. Only contributions to certain charitable organizations are deductible.
For example, you probably can't deduct a donation given through a GoFundMe page to help a local business that's struggling or a neighbor whose house burned down.
Fortunately, there's an easy way to determine if donations you make to an organization are tax-deductible charitable contributions. The IRS's online "Tax Exempt Organization Search" tool will tell you if an organization is tax-exempt and eligible to receive tax-deductible charitable contributions.
As mentioned, an IRS-approved tax-exempt organization can be a charity or a non-profit 501(c)(3) organization. For example, donations to religious organizations, such as churches that are generally registered as 501(c)(3) tax-exempt entities, are tax-deductible.
Charitable donations deduction in 2025: You must itemize to claim
You cannot claim the standard deduction and charitable deductions in the same tax year. That means you'll need to itemize deductions to deduct your charitable donations.
However, if your standard deduction is a bit higher than your itemized deductions, you may want to consider combining two years' worth of charitable contributions into the current tax year. With this strategy, known as "bunching," you may be able to boost your itemized deductions for the current year so they exceed your standard deduction amount.
Also, you may want to use a donor-advised fund if you're bunching donations.
- With a donor-advised fund, you make one large contribution to the fund (cash or assets) and deduct the entire amount as an itemized deduction in the year you make it.
- Money from the fund is then sent to the charities of your choice over the next few years when you're claiming the standard deduction.
Itemizing charitable contributions
If you do itemize, you can generally deduct contributions of cash or property to charitable organizations.
- If property is donated, your deduction is generally equal to the property's fair market value.
- If you give property that has increased in value, you may have to reduce the fair market value by the amount of appreciation when calculating the deduction.
- If the property has decreased in value, your deduction is limited to the current fair market value.
- For tips on determining the fair market value of donated property, see IRS Publication 561.
Itemizers can also deduct out-of-pocket expenses paid to do volunteer work for a charitable organization.
For example, if you drove to and from volunteer work, you can deduct the actual cost of gas and oil or 14¢ per mile, plus parking and tolls. You can't deduct any amounts that are reimbursed, though.
Note: Unlike other mileage rates, the 14¢-per-mile rate for charitable travel doesn't change from year to year.
Rules and limitations for charitable tax deductions
There are certain hoops you might have to jump through before you can claim a charitable donation tax deduction. For instance, for gifts of $250 or more, you must get a written acknowledgment from the charity stating the following:
- The amount of any cash donation and a description (but not value) of any donated property
- Whether the charity gave you any goods or services in return for your contribution.
(Note: Additional requirements for written records and acknowledgments may apply. See IRS Publication 1771 for detailed information.)
If you donate property worth $500 or more, you have to submit Form 8283 with your return. If you donate a motor vehicle, boat, or airplane worth over $5,000, you might have to get the property appraised, too. Other requirements must be satisfied, so read the Schedule A instructions carefully before claiming a charitable deduction.
The amount you can deduct can be limited or reduced, too.
For example, if you make a gift and receive a benefit in return – such as food, entertainment, or merchandise – you generally have to subtract the value of the benefit from your deduction. The deduction for cash donations is generally limited to 60% of your federal adjusted gross income (AGI). However, that percentage drops for certain types of contributions.
- If you donate property to certain charitable organizations, your deduction might be limited to 50% of your AGI.
- There's a 30%-of-AGI limit for capital gain property contributed to certain organizations.
If you're denied part of a deduction because of the above limits, you may be able to carry the excess amount over and deduct it on a future tax return (carryovers are generally limited to five years).
Check the Schedule A instructions and IRS Publication 526 for details and additional limits.
Is a QCD better than a charitable deduction?
If you're at least 70½ years old, you can transfer up to $108,000 directly from a traditional IRA to charity through a qualified charitable distribution (QCD).
Charitable donations made by qualified older adults via a QCD aren't deductible, but you can still save on taxes since QCDs aren't included in taxable income. So, you get a tax break whether or not you itemize.
Does a QCD reduce your RMD? There's an additional perk for taxpayers who use QCDs to donate to charity – QCD donations also count toward your required minimum distribution (RMD). And, again, they count as an RMD without adding to your adjusted gross income.
Major changes to charitable deductions in 2026
The Trump administration’s newly enacted tax cuts and spending megabill includes several changes that impact taxpayers who may opt to donate, beginning in 2026.
That means the following new rules for charitable donations will impact tax returns you generally file in early 2027. Keeping track of these key changes may help you maximize your savings. Let’s dive in.
- New standard deduction for non-itemizers: Starting in 2026, you will be allowed to deduct up to $1,000 in cash donations ($2,000 for joint filers) without itemizing. The rule applies only to direct cash gifts given to qualifying 501(c)(3) charities or non-profit organizations.
- Charitable deduction floor: Charitable donations that are itemized (generally non-cash gifts) must exceed 0.5% of your adjusted gross income before qualifying for a tax deduction.
- Cash gifts to public charities: Taxpayers can deduct cash contributions up to 60% of their adjusted gross income. The provision is now permanent.
- New cap on itemized deductions: Starting in 2026, the new legislation implements a 35% cap for all itemized deductions. From 2018 through 2025, there is no cap on itemized deductions.
All of the changes mentioned above will likely impact how you handle charitable donations in 2026, and whether you opt for a standard deduction or to itemize deductions.
If you or your loved ones plan to donate, keep track of your contributions through receipts, as you may be able to write off certain items during the next tax filing season.
You may be surprised by what donations give you a tax break. For instance, some wedding expenses may be tax-deductible if you plan accordingly.
If you’re unsure of how to manage your donations, speak with a trusted and certified tax professional or advisor. They may help you maximize your savings through strategic charitable contributions.
