Deducting charitable donations
If you itemize income tax deductions on Schedule A (Form 1040), you may be able to deduct your charitable donations.
Keep in mind that not every nonprofit organization is a tax-qualified charitable organization. To confirm, you can ask the organization directly or check the IRS’s Tax Exempt Organization Search tool to see whether your contribution is tax-deductible.
Be sure to keep good records of all your donations. You can deduct cash donations and donations of property, but you cannot deduct the value of donated time or services.
Types of deductible donations
Money donations — Receipts are required for all monetary donations, regardless of the amount.
Item donations — You may donate new or used goods to a charity and deduct their fair market value. Special rules apply to donations of vehicles and appreciated property (property that is worth more than you paid for it).
Volunteering — You can deduct 14¢ per mile while driving for charity. You may also deduct out-of-pocket expenses incurred while volunteering, such as supplies or uniforms that are not reimbursed.
Contributions where you receive something in return
If you contribute to a charity and receive something in return — such as a dinner or other benefit — your deductible amount is limited to the amount you paid minus the fair market value of what you received.
You do not have to reduce your deduction if you receive only a token item or insubstantial benefit, as defined by IRS rules. In that case, you may deduct the full contribution amount.
Deduction limits
The deduction for charitable contributions is generally limited to a percentage of your adjusted gross income (AGI).
- Most contributions to qualified public charities are limited to 50% (or 60% in some cases) of your AGI.
- Donations of appreciated property (such as stock or real estate) may be limited to 30% of your AGI if you deduct the fair market value of the property, or 50% if you deduct your cost basis instead.
For current contribution limits and special rules, see the IRS page on charitable contribution deductions.
Please note: This page offers general legal information, not but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
