Get Tax Breaks for Charitable Giving
You can do good and trim your tax bill at the same time.


Charity fund-raising reaches a fever pitch in the holiday season -- and your mailbox will likely be stuffed with appeals for help. Before you open your wallet, you need to understand the complex IRS record-keeping and other rules.
Also, make sure the charity is eligible to receive tax-deductible contributions. Search the IRS database of exempt organizations at https://apps.irs.gov/app/eos. (In the search field, put quote marks around the name of the charity.)
Beat the clock. If you make donations by check, pop them in the mail at least a couple of days before December 31, to give the Postal Service time to give them a 2015 postmark. A donation made by credit card is deductible in the year the charge is incurred, even if you don't pay the card bill until the following year.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You can make credit card contributions by going to the Web sites of the individual nonprofits, but you can save time with a one-stop giving site. American Express cardholders, for example, can use its Members Give service to make contributions to any of one million charities. The service sends a confirmation to your e-mail, and you can keep track of your donations at tax time. AmEx deducts a 2.25% processing fee, which the company notes is the same fee a charity would pay if you give directly using the card.
Donors who don't have time to choose charities just yet can set up a donor-advised fund. You get a tax deduction on the date you give the money to the fund, but you can select the charities to support in the future. Charles Schwab and Fidelity administer two of the largest donor-advised funds, and many community foundations operate funds as well.
Give away stuff. The IRS requires that any donations of household items, old clothing and furniture be in "good condition or better." You can get valuations of used items at www.goodwill.org or www.salvationarmyusa.org. Your guide on the good-condition rule: Ask yourself if you'd give the item to a friend or relative.
You can get a deduction of a single item that is not in good condition if the item is valued at more than $500 by attaching an appraisal and Form 8283 with the return. For example, a vintage designer wedding gown donated to a local museum could meet the test.
Keep good records. You must keep records for all donations, but the kind of documentation will depend on the amount of contributions and whether they are cash or noncash.
You cannot deduct a cash contribution unless you have a canceled check, bank statement, credit card statement or receipt from the organization. For each cash donation of $250 or more, you must have a written acknowledgement from the charity showing the amount and date of the contribution. The document also must note whether you received any goods or services in return for your donation.
For noncash contributions, the records will differ depending on whether a deduction for a contribution is less than $250, between $250 and $500, more than $500 and up to $5,000, or more than $5,000. For a small contribution, you must keep a receipt from the charity; for a donation worth more than $5,000, you must obtain an appraisal. (For more details, read IRS Publication 526, Charitable Contributions.)
Deduct out-of-pocket expenses. It's possible that you will step up your volunteer activities in the last few weeks of the year. You cannot deduct the value of your time, but you may be able to write off some of your expenses, such as the cost of supplies you bought to bake pies for a fund-raising event, for example.
You must keep records of all your expenses. If you spent $250 or more on a single expense -- perhaps an airline ticket to a charitable event -- you must receive an acknowledgement from the charity.
If you use your car for charitable purposes, you can deduct 14 cents a mile. Your written records must include the name of the organization you are helping and the dates you used your car for charitable purposes.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
COVID Aged Your Brain Faster, Even if You Didn't Get Sick
Whether you contracted COVID or not, your brain took a hit. Here's what that means for your health and what you can do about it.
-
This Might Be What Your Retirement Portfolio Is Missing
You can supplement your retirement nest egg or save for other goals with a taxable brokerage account.
-
Tariff Stimulus Checks Coming? New Proposal Seeks Tax Rebates for U.S. Workers
Tax Breaks A new GOP bill proposes to send $600 in tariff rebate checks to eligible taxpayers. Is there a catch?
-
Biggest Winners and Losers in Trump's New Tax Plan
Tax Law Trump’s mega tax overhaul, known as the ‘One Big Beautiful Bill,’ has distinct winners and losers. Which group do you fall into?
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)
Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund, a smaller one or something in between next year. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ Pockets
Tax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's Finances
Tax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
-
New Cap on Gambling Loss Deductions Begins Soon: What to Know Now
Tax Changes A gambling losses tax deduction cap in Trump’s “big beautiful bill” is causing an uproar. Here’s what you need to know.
-
Key 2025 Tax Changes for Parents in Trump's Megabill
Tax Changes Are you a parent? The so-called ‘One Big Beautiful Bill’ (OBBB) impacts several key tax incentives that can affect your family this year and beyond.
-
Elon Musk and Most Taxpayers Don't Like What's in Trump's 'Big Beautiful Bill'
Tax Policy President Trump is betting big on his newest tax cuts, signed into law on July 4. But not everyone is on board.