How Charitable Donations Can Reduce Your Taxes
Donating this year? See whether claiming a charitable donation could be right for you.
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.
And thanks to the 2025 Trump tax bill, there are also some rule changes this year that impact taxpayers and charitable giving.
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Here’s what you need to know about charitable donations and your taxes.
Related: 3 Major Changes to the Charitable Deduction in 2026
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.
New charitable deduction for cash donations
Starting in tax year 2026, a new permanent rule from the 2025 Trump tax bill takes effect. Folks who claim the standard deduction may be eligible for a tax break when donating cash to a qualified charity.
- Single filers can deduct up to $1,000.
- Married couples filing jointly can deduct up to $2,000.
This new deduction only applies to cash gifts (or cash equivalents, like credit card payments, PayPal, etc.) to eligible public charities. It doesn't cover private non-operating foundations or donor-advised funds (more on those later).
The itemized charitable donations deduction in 2026
If you want to claim more than $1,000 in charitable cash contributions ($2,000 if married filing jointly) in a given tax year, you'll need to itemize to deduct your charitable donations.
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.
New rules to the itemized charitable deduction in 2026
The 2025 Trump tax bill also made several new changes that impact itemizing taxpayers who opt to donate. These changes are also effective in 2026 and will likely impact how you handle charitable donations if you itemize:
- Charitable deduction floor: Total charitable donations that are itemized (including both cash and non-cash gifts) must exceed 0.5% of your federal adjusted gross income (AGI) before qualifying for a tax deduction.
- Cash gifts to public charities: Taxpayers can deduct cash contributions up to 60% of their AGI.
- New cap on itemized deductions: Starting in 2026, the new legislation implements a 35% cap on the tax benefit rate of all itemized deductions. This means high-earning taxpayers in the top 37% marginal tax bracket will only save a maximum of 35 cents in taxes for every dollar deducted, rather than 37 cents. There is no cap on the total dollar amount of deductions you can claim.
Existing rules for charitable tax deductions
In addition to the rules above, there may be more hoops you might have to jump through before you can claim an itemized charitable donation tax deduction.
After all, the amount you can deduct can be limited or reduced:
- 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.
- As noted above, the deduction for cash donations is generally limited to 60% of your federal 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).
Documentation requirements
There are also certain documentation requirements when making a charitable contribution. 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 the 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 and IRS Publication 526 for details and additional limits before claiming a charitable deduction.
Bunching and donor-advised funds
If your 2026 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.
Is a QCD better than a charitable deduction?
If you're at least 70½ years old, you can transfer up to $111,000 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.
The bottom line
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 tax filing season.
But if you’re unsure of how to manage your donations, speak with a trusted tax professional or advisor. They may help you maximize your savings through strategic charitable contributions.
Read More
- Charitable Donations: What To Know About Scams and Taxes Before You Give
- What Is Your Adjusted Gross Income (AGI)?
- Jumpstart Your Charitable Giving With A Donor-Advised Fund
