Are Donations Tax Deductible? Limits, Records, and New Deduction

Yes, donations are tax deductible when you give to a qualified charity, but the size of the tax benefit depends on how you file and what you give. Itemizers report gifts on Schedule A and can deduct up to 60 percent of adjusted gross income for cash contributions to public charities, with lower ceilings for property and certain recipients. Starting with 2026 returns, people who take the standard deduction can also write off up to $1,000 in cash gifts ($2,000 for married couples filing jointly) without itemizing.

Which Organizations Qualify

A gift only produces a deduction if it goes to an eligible recipient. The usual qualifying groups are organizations described in section 501(c)(3) of the Internal Revenue Code: charities, churches and other religious organizations, nonprofit schools, and groups organized for scientific, literary, or educational purposes.¹ Federal, state, and local government units also qualify when the gift is for a public purpose.²

Several categories that feel charitable are not deductible:

Social welfare organizations under section 501(c)(4). They are tax-exempt, but donations to them generally do not qualify as charitable contributions.³
Political candidates, political action committees, and lobbying groups. Campaign contributions never qualify.
Payments directly to individuals in need, for-profit medical facilities, and foreign organizations.

You can confirm a group’s status before you give using the IRS Tax Exempt Organization Search on irs.gov.⁴

The New Deduction for People Who Don’t Itemize

Under legislation signed in 2025, taxpayers who take the standard deduction can claim a limited charitable write-off beginning with 2026 returns. The cap is $1,000 for single filers and $2,000 for married couples filing jointly, and it applies only to cash gifts made directly to qualified charities. Contributions to donor-advised funds and private foundations do not count.

This is an above-the-line deduction, meaning it reduces your adjusted gross income before the standard deduction is applied. You claim it on Form 1040 in addition to the standard deduction, not on Schedule A.

When Itemizing Is Worth It

To deduct more than the $1,000/$2,000 above-the-line amount, you have to itemize. For 2026, the standard deduction is $16,100 for single filers, $24,150 for heads of household, and $32,200 for married couples filing jointly.⁵ Itemizing pays off only when your combined deductible expenses — charitable gifts, mortgage interest, state and local taxes, medical costs — add up to more than that.

A single filer who donates $5,000 but has only modest other deductions is still better off with the $16,100 standard deduction. In that case the $5,000 gift produces no extra tax benefit beyond the $1,000 above-the-line deduction for cash.

Beginning in 2026, itemizers also face a new floor: charitable contributions are only deductible to the extent they exceed a small percentage of AGI. High-income donors in the top bracket face a separate cap that trims the tax value of their deduction to slightly below their marginal rate.

How Much You Can Deduct

Federal law limits your annual charitable deduction to a percentage of AGI, and the percentage depends on both the type of gift and the recipient:

Cash to public charities: up to 60 percent of AGI.⁶
Appreciated capital gain property held longer than one year and given to public charities: up to 30 percent of AGI.⁶
Gifts to private foundations and certain other organizations: up to 20 percent of AGI.⁶

Amounts above the cap are not lost. You can carry the excess forward and deduct it over the next five tax years, still subject to the same percentage limits each year.¹

Cash, Stock, Goods, and Vehicles

The kind of gift you make changes how the deduction is calculated.

Cash

Cash is the simplest. You deduct the amount given, up to the 60 percent AGI cap for public charities.

Appreciated Stock and Other Long-Term Property

Giving stock, mutual fund shares, or other appreciated assets held more than one year directly to a charity is often the most tax-efficient option. You can deduct the full fair market value on the date of the gift and avoid capital gains tax on the appreciation. Sell first, and you owe capital gains tax on the profit before you donate what’s left.

If you bought stock for $5,000 that is now worth $20,000, donating it directly lets you deduct $20,000 and skip tax on the $15,000 gain. The 30 percent AGI ceiling applies here rather than the 60 percent cash limit.⁶ Assets held one year or less are deductible only at your original cost, not the current market value.

Clothing and Household Items

Donated clothing and household goods must be in good used condition or better to qualify.⁷ Items below that standard are deductible only if you claim more than $500 for a single item and back it up with a qualified appraisal on Section B of Form 8283. Most everyday donations are valued at thrift-store prices, and documenting each item’s condition matters if the IRS asks.

Cars, Boats, and Airplanes

Donating a vehicle worth more than $500 triggers special rules. Your deduction is generally capped at the price the charity actually gets when it sells the vehicle, not the fair market value on Kelley Blue Book.⁸ Full fair market value is only allowed if the charity uses the vehicle in its work, makes significant improvements to it, or gives it to a person in need at a steep discount as part of its mission.

The charity has to send you Form 1098-C after selling or placing the vehicle in service, and you must attach Copy B to your return. Electronic filers can send it as a PDF or mail it with Form 8453. No attached 1098-C, no deduction.⁹

Volunteer Expenses

The value of your time is never deductible, but unreimbursed out-of-pocket expenses from volunteering for a qualified charity are. The charitable mileage rate is set by statute at 14 cents per mile and does not change with inflation.¹ Parking, tolls, and reasonable overnight travel and meal costs tied to the volunteer work also qualify.

When You Get Something in Return

Pay $200 for a charity gala ticket and the dinner is worth $75? Only $125 is deductible. The IRS calls this a quid pro quo contribution: only the amount above the value of goods or services you received counts.¹⁰ Any organization that receives a quid pro quo payment above $75 has to give you a written statement showing the deductible portion and a good-faith estimate of the value you got in return.⁶ A token item of minimal value or an intangible religious benefit does not reduce the deduction.

Qualified Charitable Distributions From an IRA

If you are 70½ or older, you can send money straight from a traditional IRA to a qualified charity and leave it out of your taxable income entirely. The cap is $111,000 in 2026.¹¹¹² A separate one-time election allows up to $55,000 to certain split-interest charitable entities such as charitable remainder trusts.

Qualified charitable distributions cut your gross income without requiring you to itemize, and they can count toward your required minimum distribution for the year. The catch: the money has to go directly from the IRA trustee to the charity. If it lands in your account first, it doesn’t qualify.

Records You Have to Keep

The IRS requires different proof depending on the size and type of your gift, and the deduction disappears if you cannot produce it.

For cash gifts of any amount, you need a bank record (canceled check, credit card statement) or a written receipt from the charity showing its name, the date, and the amount.⁶ For any single cash gift of $250 or more, you also need a written acknowledgment from the organization before you file, stating whether you got anything in return.¹

Non-cash donations totaling more than $500 require Form 8283 with your return.¹³ Property valued above $5,000 per item or group of similar items requires a qualified appraisal from a certified appraiser, prepared no earlier than 60 days before the gift and no later than the return’s due date.¹⁴

Keep everything — receipts, acknowledgments, appraisals, bank records — for at least three years after filing.¹⁵ The burden of proving each deduction is on you.

Penalties for Overvaluing Property

Inflating the value of donated property brings sharp penalties. A substantial valuation misstatement adds 20 percent of the resulting tax underpayment.¹⁶ Claim a value that reaches 400 percent or more of the correct value, and the penalty doubles to 40 percent as a gross valuation misstatement.¹⁷ The same 20 percent penalty can apply to underpayments caused by negligence, which the IRS reads broadly enough to include sloppy recordkeeping or unsupported value estimates on Form 8283, even without any intent to cheat.

1
Office of the Law Revision Counsel. 26 USC 170 – Charitable, Etc., Contributions and Gifts
2
Internal Revenue Service. Charities and Nonprofits
3
Internal Revenue Service. Donations to Section 501(c)(4) Organizations
4
Internal Revenue Service. Tax Exempt Organization Search
5
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill
6
Internal Revenue Service. Publication 526 (2025), Charitable Contributions
7
Internal Revenue Service. Publication 561 (12/2024), Determining the Value of Donated Property
8
Internal Revenue Service. IRS Guidance Explains Rules for Vehicle Donations
9
Internal Revenue Service. Form 1098-C Contributions of Motor Vehicles, Boats, and Airplanes
10
Office of the Law Revision Counsel. 26 USC 6115 – Disclosure Related to Quid Pro Quo Contributions
11
Office of the Law Revision Counsel. 26 USC 408 – Individual Retirement Accounts
12
Internal Revenue Service. 2026 Amounts Relating to Retirement Plans and IRAs
13
Internal Revenue Service. Instructions for Form 8283 (Rev. December 2025)
14
Internal Revenue Service. About Form 8283, Noncash Charitable Contributions
15
Internal Revenue Service. How Long Should I Keep Records?
16
Office of the Law Revision Counsel. 26 USC 6662 – Imposition of Accuracy-Related Penalty on Underpayments
17
eCFR. 26 CFR 1.6662-5 – Substantial and Gross Valuation Misstatements Under Chapter 1