Yes, donations to the Tunnel to Towers Foundation are tax deductible. The IRS recognizes Tunnel to Towers as a 501(c)(3) public charity, so gifts qualify for a federal income tax deduction if you follow the rules for claiming one. How much of your gift actually reduces your tax bill depends on whether you itemize, how much you give relative to your income, and what form the gift takes. A new provision that takes effect in tax year 2026 also lets people who take the standard deduction write off a limited amount of charitable giving for the first time in years.
Why Tunnel to Towers Qualifies
Tunnel to Towers is organized as a New York nonprofit corporation and holds IRS recognition as tax-exempt under Section 501(c)(3) of the Internal Revenue Code. It is also classified as a public charity under Section 509(a)(1), meaning it draws broad public support rather than depending on a single donor or endowment.1Tunnel to Towers Foundation. Tax Deductibility That classification matters: gifts to public charities carry higher deduction ceilings than gifts to private foundations.
Do You Have to Itemize?
Traditionally, charitable gifts only produced a tax benefit if you itemized on Schedule A of Form 1040 and your total itemized expenses (mortgage interest, state and local taxes up to $10,000, qualifying medical costs, and charitable gifts) exceeded the standard deduction. For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.2Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 Since 2018, most taxpayers have found itemizing doesn’t pay, and their charitable gifts have produced no federal deduction as a result.
New in 2026: A Deduction for Non-Itemizers
The One Big Beautiful Bill Act created an above-the-line deduction for charitable contributions starting in tax year 2026. Taxpayers who take the standard deduction can also deduct up to $1,000 in cash gifts to qualifying public charities like Tunnel to Towers, or up to $2,000 for married couples filing jointly. The deduction does not apply to contributions routed through donor-advised funds. If you give $11 a month to Tunnel to Towers under its recurring donor program — $132 a year — you can now claim that amount without itemizing.
The 0.5% Floor
The same law introduced a floor on charitable deductions beginning in 2026. Only the portion of your giving that exceeds 0.5% of your adjusted gross income counts. If your AGI is $100,000, the first $500 of charitable giving produces no deduction; at $200,000, the first $1,000 doesn’t count. The floor is a real bite for donors making modest gifts and a minor drag for donors giving larger amounts relative to income.
How Much of a Gift You Can Deduct
Even for itemizers, the IRS caps the deduction based on your adjusted gross income, and the cap depends on what you give:
- Cash gifts to a public charity like Tunnel to Towers are deductible up to 60% of AGI. The One Big Beautiful Bill Act made this 60% ceiling permanent.3Internal Revenue Service. Charitable Contribution Deductions
- Gifts of appreciated property (stock, real estate) held long-term are deductible up to 30% of AGI at fair market value.4Internal Revenue Service. Publication 526 – Charitable Contributions
If your giving exceeds these ceilings in one year, the excess isn’t lost. Federal law lets you carry it forward for up to five tax years.5Office of the Law Revision Counsel. 26 USC 170 – Charitable, Etc., Contributions and Gifts
The Form of the Gift Changes the Math
Cash, Check, and Credit Card
Straight cash gifts, checks, and credit card payments qualify for the 60% AGI ceiling and require the least paperwork at smaller amounts. At year-end, timing follows two rules: a credit card charge counts in the year the charge posts, not when you pay the bill, and a mailed check counts for the year of the postmark.4Internal Revenue Service. Publication 526 – Charitable Contributions
Appreciated Stock
Donating publicly traded stock held more than a year is among the most efficient ways to give. You deduct the full fair market value on the date of the gift and owe no capital gains tax on the appreciation. Shares bought for $2,000 and now worth $10,000 produce a $10,000 deduction and no tax on the $8,000 of gain. The tradeoff is the lower 30% AGI ceiling, softened by the five-year carryforward.
Vehicles
If you donate a car, boat, or airplane worth more than $500, special rules apply. The charity must give you Form 1098-C, and your deduction is generally limited to the gross proceeds when the charity sells the vehicle rather than the Blue Book value.6Internal Revenue Service. About Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes If the charity keeps the vehicle for its own use, fair market value applies, but that’s less common.
Quid Pro Quo: When You Get Something Back
If you receive something in return — a gala dinner, event tickets, merchandise — only the amount above the fair market value of what you received is deductible. Paying $500 for a fundraising dinner valued at $100 produces a $400 deduction.7Internal Revenue Service. Charitable Contributions – Quid Pro Quo Contributions The charity must give you a written disclosure estimating that benefit value for any payment over $75.
Qualified Charitable Distributions From an IRA
If you’re 70½ or older and hold a traditional IRA, a qualified charitable distribution can be the best option available. A QCD moves up to $111,000 in 2026 directly from your IRA to a qualifying charity like Tunnel to Towers.8Congress.gov. Qualified Charitable Distributions From Individual Retirement Arrangements The transfer counts toward your required minimum distribution but never appears in your taxable income, which is a better result than pulling the money out, paying tax on it, and donating what’s left, especially if you don’t itemize.
The money must go directly from your IRA custodian to the charity. If it touches your account first, it becomes a regular taxable distribution. Married couples can each make their own QCD up to the $111,000 limit. Roth IRAs technically qualify, but because Roth distributions are already tax-free the QCD produces no added benefit. QCDs cannot be made from SEP or SIMPLE IRAs that are still receiving employer contributions.
What You Need to Keep
The IRS won’t take your word for a charitable deduction. Documentation requirements scale with the size of the gift:
- Under $250: a bank record, canceled check, or written communication from the charity showing its name, the date, and the amount.
- $250 or more: a written acknowledgment from the charity, obtained before you file, stating the cash amount, describing any property, and indicating whether the charity provided goods or services in return.9Internal Revenue Service. Charitable Contributions – Written Acknowledgments
- Non-cash gifts over $500: attach Form 8283 to your return.10Internal Revenue Service. Instructions for Form 8283 – Noncash Charitable Contributions
- Non-cash gifts over $5,000: a qualified appraisal by a certified appraiser prepared no earlier than 60 days before the donation. Publicly traded stock is exempt from the appraisal requirement.11Internal Revenue Service. Instructions for Form 8283
Tunnel to Towers typically emails a receipt shortly after each gift. Match those receipts against your bank or credit card statements and keep everything for at least three years after filing the return that claims the deduction, which is the standard IRS audit window.12Internal Revenue Service. Topic No. 305, Recordkeeping
Where the Deduction Goes on Your Return
If you itemize, charitable contributions go on Schedule A of Form 1040: cash gifts on line 11, non-cash gifts on line 12.13Internal Revenue Service. Instructions for Schedule A (Form 1040) When non-cash donations total more than $500, attach Form 8283.14Internal Revenue Service. Form 8283 – Noncash Charitable Contributions The Schedule A total flows to Form 1040 and reduces your taxable income.
If you’re claiming the new non-itemizer deduction for 2026, you take the standard deduction as usual and claim the charitable amount separately as an above-the-line deduction. The receipt and acknowledgment requirements are the same either way.