Is Tunnel to Towers Tax Deductible? AGI Limits and Records

Yes, donations to Tunnel to Towers are tax deductible. The IRS recognizes the Stephen Siller Tunnel to Towers Foundation as a 501(c)(3) public charity, so cash and property gifts qualify for a federal income tax deduction under Internal Revenue Code Section 170.¹² How much of your gift actually reduces your tax bill depends on whether you take the standard deduction or itemize, what you give, and how much you give relative to your income.

The Foundation’s 501(c)(3) Status

Tunnel to Towers is organized as a not-for-profit corporation under New York law and holds tax-exempt status with the IRS as a 501(c)(3) public charity.¹ That is the classification that makes contributions deductible under Section 170. Gifts to other kinds of tax-exempt organizations—social welfare groups, political committees, individual GoFundMe recipients—do not qualify, so the foundation’s specific status is what matters here.

A New Deduction for Non-Itemizers in 2026

Most taxpayers claim the standard deduction and, in recent years, have gotten no tax benefit from charitable giving. That changes for the 2026 tax year. The One Big Beautiful Bill Act, signed into law on July 4, 2025, created an above-the-line deduction of up to $1,000 for single filers and $2,000 for married couples filing jointly. The deduction reduces your adjusted gross income directly, without any need to itemize on Schedule A.

The rules on this new deduction are narrower than the itemized version. Only cash contributions count, which includes checks, credit and debit card charges, and online gifts. The recipient must be a qualifying 501(c)(3) public charity, which Tunnel to Towers is; gifts to donor-advised funds and private foundations are excluded. And if your giving exceeds the annual cap, the excess is simply lost. There is no carryforward.

Itemizing Your Charitable Deduction

If your total deductible expenses beat the standard deduction, itemizing on Schedule A produces a larger tax benefit than the $1,000 non-itemizer deduction.³ For 2026, the standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.⁴ If your mortgage interest, state and local taxes, medical expenses, and charitable gifts combined clear those numbers, itemize.

The 0.5% AGI Floor

Beginning in 2026, itemizers face a new floor: only the portion of charitable contributions that exceeds 0.5% of your adjusted gross income is deductible. At an AGI of $100,000, the first $500 of donations produces no tax benefit; only what you give above that threshold counts. The floor does not apply to the new $1,000 non-itemizer deduction.

AGI Ceilings on What You Can Deduct

The tax code also caps annual charitable deductions as a percentage of AGI. Cash gifts to a public charity like Tunnel to Towers are deductible up to 60% of AGI. Gifts of appreciated property held longer than a year are deductible up to 30% of AGI.⁵

Anything above the ceiling is not lost. If you earn $100,000 and donate $70,000 in cash, you deduct $60,000 this year and carry the remaining $10,000 forward for up to five years, subject to the same percentage limits each year.⁵ Older carryovers are applied before newer ones.

Donating Stock, Vehicles, and Other Property

Tunnel to Towers accepts more than cash, and in some situations non-cash gifts are more tax-efficient than writing a check.

Appreciated Stock

Shares held longer than a year can generally be deducted at their full fair market value on the date of the gift, and you avoid capital gains tax on the appreciation.⁵ Buy shares for $2,000, watch them grow to $10,000, donate them: you deduct $10,000 and never pay tax on the $8,000 gain. These gifts fall under the 30% AGI limit rather than the 60% cash limit.

Vehicles

Car donations follow tighter rules. If the charity sells your vehicle, your deduction is generally capped at the actual sale price, not the blue book value. You can deduct full fair market value only if the charity uses the vehicle in its operations, makes significant improvements to it, or transfers it to a needy individual at a below-market price.⁶

Forms and Appraisals

Any non-cash donation over $500 requires Form 8283 attached to your return.⁷ If the claimed value exceeds $5,000, you also need a qualified independent appraisal, and the charity itself cannot serve as the appraiser.⁸ Publicly traded stock is exempt from the appraisal requirement because market prices establish its value.

Events, Runs, and Merchandise

Tunnel to Towers runs a national series of 5K events, tower climbs, and walks, and sells merchandise through its website. When you get something of value in exchange for a payment, only the amount above that value is deductible.⁹

Pay $200 to register for a 5K and receive a race packet, T-shirt, and post-race meal worth $50, and $150 is deductible. For any payment over $75 where you receive goods or services in return, the foundation must send you a written disclosure estimating what you received.⁹ Token items such as a bumper sticker or lapel pin do not reduce the deductible amount.

Giving Directly From an IRA

Donors 70½ or older can give directly from a traditional IRA to Tunnel to Towers through a qualified charitable distribution. The transfer never enters your taxable income, which is often more valuable than a deduction, especially for retirees who take the standard deduction and would otherwise pay tax on IRA withdrawals. A QCD also counts toward your required minimum distribution for the year.

For 2026, the annual QCD limit is $111,000 per individual, or $222,000 for a married couple filing jointly. The procedural rule that trips donors up: your IRA custodian must send the funds directly to the charity. If you withdraw the money first and then write a personal check, the withdrawal is taxable and the QCD treatment is gone.⁵

When the Gift Counts

A donation is deductible in the year it is “paid,” and the meaning of paid depends on the method.

Credit or debit card charges are deductible in the year of the charge, even if you pay the card bill in January.⁵
A check counts for the year of its postmark, even if the charity deposits it later. USPS applies machine postmarks at regional centers, so a letter dropped at your local post office on December 30 may not carry a December 30 postmark. If the timing is tight, buy postage at the counter and ask for a hand stamp.
An online bank transfer or wire counts in the year the funds leave your account.

A gift processed on January 2 belongs to the next tax year, no matter when you meant to give it.

Records You Need to Keep

Deductions are only as good as the paperwork behind them. The IRS requires progressively more documentation as gifts get larger.

Under $250

Keep a bank statement, canceled check, credit card statement, or receipt from the foundation showing its name, the date, and the amount. Without one of these, the IRS will deny the deduction.¹⁰

$250 or More

A bank record is not enough at this level. You need a written acknowledgment from Tunnel to Towers stating the amount and whether you received any goods or services in return, and if so, a good-faith estimate of their value.¹¹ You must have the letter in hand by the time you file, or by the return’s due date including extensions, whichever comes first.¹⁰ Request it if the foundation has not sent one.

Non-Cash Over $500 and $5,000

Non-cash gifts over $500 require Form 8283 with your return.⁷ Property valued above $5,000 (other than publicly traded stock) requires a qualified independent appraisal and completion of Section B of Form 8283.⁸ Hold onto appraisals and acknowledgment letters for at least three years after filing, and longer if you are carrying deductions forward.

1
Tunnel to Towers Foundation. Tax Deductibility
2
Office of the Law Revision Counsel. 26 USC 170 – Charitable, Etc., Contributions and Gifts
3
Internal Revenue Service. Deducting Charitable Contributions at a Glance
4
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill
5
Internal Revenue Service. Publication 526 (2025), Charitable Contributions
6
Internal Revenue Service. IRS Guidance Explains Rules for Vehicle Donations
7
Internal Revenue Service. Instructions for Form 8283
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Internal Revenue Service. Charitable Organizations: Substantiating Noncash Contributions
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Internal Revenue Service. Charitable Contributions: Quid Pro Quo Contributions
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Internal Revenue Service. Charitable Organizations: Substantiation and Disclosure Requirements
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Internal Revenue Service. Substantiating Charitable Contributions