Qualified Charitable Organizations: IRC Section 170(c) Rules

Under Internal Revenue Code Section 170(c), only five categories of recipients can receive tax-deductible charitable contributions: government entities receiving gifts for public purposes; U.S.-organized corporations, trusts, community chests, and funds set up for religious, charitable, scientific, literary, or educational purposes (or to prevent cruelty to children or animals, or to foster amateur sports competition); war veterans’ organizations; fraternal societies operating under the lodge system, but only when the gift is used for charitable purposes; and nonprofit cemetery companies operated exclusively for their members. A gift to anything outside those five categories is not deductible on your federal return, no matter how worthy the cause.¹

The Five Categories in Section 170(c)

Each category has its own boundary, and the boundaries matter more than the labels.

Government entities. Federal, state, local, and tribal governments qualify, but only when the gift is made exclusively for public purposes. A contribution to a city’s park fund counts. Money earmarked for a particular official’s personal use does not.
Charitable corporations, trusts, community chests, and funds. This is the largest and most familiar group, covering organizations formed for religious, educational, scientific, or literary purposes, plus those working to prevent cruelty to children or animals and those promoting amateur sports competition. The organization must be created or organized in the United States, and none of its earnings can benefit a private individual.
War veterans’ organizations. Posts, auxiliaries, and similar groups organized in the United States by past or present members of the armed forces qualify, along with their foundations and trusts.
Fraternal societies operating under the lodge system. Gifts to these groups are deductible only when earmarked for charitable, religious, educational, or scientific purposes. General dues or payments toward social events do not count.
Nonprofit cemetery companies. A cemetery company qualifies only if it is owned and operated exclusively for its members’ benefit and the funds go irrevocably toward maintaining the burial grounds. For-profit cemetery companies are excluded entirely.

What Falls Outside the Categories

Some of the most common giving does not produce a deduction, and the mistakes are easy to make.

Gifts to individuals. Money sent directly to a person, even for medical bills or disaster recovery, is not deductible. The money has to flow through a qualifying organization.

Foreign charities. Contributions made directly to foreign organizations generally are not deductible. Some organizations with foreign addresses appear in the IRS database, but those are typically U.S.-formed entities operating abroad. A limited exception applies to certain Canadian charities under the U.S.-Canada tax treaty, and only if you have Canadian-source income to report on your U.S. return.²

Political contributions. Donations to candidates, campaign committees, political parties, or political action committees are never deductible. Neither are gifts to organizations that spend a substantial part of their activity on lobbying.

Pledges without payment. A promise to donate creates no deduction. The deduction arises only when you actually transfer the money or property.

Raffle tickets and fundraiser purchases. Buying raffle tickets, gala dinner seats, or auction items is not a pure donation. Only the portion of your payment that exceeds the fair market value of what you received can be deductible.³

A donor-advised fund is one useful workaround when you want flexibility. You contribute to the fund, take an immediate deduction in that year as if you gave to a public charity, and then recommend grants to specific organizations later. The AGI limits are the same as those for public charities.³

Confirming an Organization Qualifies Before You Donate

Before giving to an unfamiliar group, confirm it is currently eligible. The most reliable identifier is the organization’s nine-digit Employer Identification Number, along with its exact legal name.

The IRS runs a free Tax Exempt Organization Search tool on irs.gov. Search by name or EIN, and the results show whether the organization can currently receive tax-deductible contributions. The tool also links to recent annual filings and flags any revocation.⁴

You can also ask the organization for its IRS determination letter, which specifies the code section under which it was granted exempt status and the effective date. If the original has been lost, an affirmation letter from the IRS serves the same purpose.⁵

Federal law also gives you the right to inspect a tax-exempt organization’s annual returns, its exemption application, and supporting documents. You can do this in person at the organization’s principal office during business hours or request copies in writing. The organization may charge a reasonable fee for copying and mailing.⁶

Losing Qualified Status

Qualification can end. Tax-exempt organizations that fail to file a required annual return for three consecutive years automatically lose their exempt status. The IRS publishes an Automatic Revocation List, and donations made after an organization appears on that list are not deductible. Gifts made before the organization landed on the list remain deductible.⁷

Organizations can also lose their status for substantive violations, including shifting focus away from their exempt purpose, allowing private inurement, or engaging in prohibited political campaign activity. When revocation happens, the organization stops being eligible to receive deductible contributions and becomes subject to regular federal income tax on its earnings. Checking the Tax Exempt Organization Search tool right before a large gift is the safest move.⁴

How Much of a Qualifying Gift You Can Deduct

Even a gift to a qualifying organization is capped at a percentage of your adjusted gross income. The percentage depends on what you give and which type of organization receives it.

60% of AGI: Cash contributions to public charities, churches, educational institutions, hospitals, and similar organizations in the second category. Congress made this limit permanent for tax years beginning after December 31, 2025.¹
50% of AGI: Non-cash contributions to those same organizations.
30% of AGI: Cash or non-cash contributions to veterans’ organizations, fraternal societies, and certain private foundations. Capital gain property donated to a public charity also falls here.
20% of AGI: Capital gain property donated to veterans’ organizations, fraternal societies, or private foundations.³

Contributions above the applicable cap carry forward for up to five years, subject to the same percentage limit each year until used up or expired.¹

Historically, claiming any charitable deduction required itemizing on Schedule A, which meant your total itemized deductions had to exceed the standard deduction to help you. 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.⁸

Starting with tax year 2026, a new above-the-line deduction lets non-itemizers deduct up to $1,000 in cash contributions to qualifying organizations, or $2,000 for married couples filing jointly. It is available even if you take the standard deduction, and it applies only to cash, not property.⁹

Documentation the IRS Requires

A qualifying recipient is only half of the deduction. The other half is proof.

For any single contribution of $250 or more, you need a written acknowledgment from the receiving organization. It must state the organization’s name, the cash amount or a description of any non-cash property, and whether the organization provided any goods or services in return. If it did, the acknowledgment must include a good-faith estimate of their value. You must have this document in hand by the time you file your return for the year of the gift. A canceled check or bank statement alone is not enough at the $250 threshold, and missing acknowledgments are one of the most common reasons deductions are disallowed on audit.¹⁰

If you donate property and claim more than $5,000 for a single item or a group of similar items, you need a qualified appraisal from a qualified appraiser and must report the donation on Section B of Form 8283. For clothing or household items that are not in good condition or better, the appraisal threshold drops to $500.¹¹

For quid pro quo gifts over $75, the charity must give you a written disclosure stating that your deductible amount is limited to what you paid minus the fair market value of what you received, and providing an estimate of that value. Pay $200 for a charity gala dinner worth $75, and only $125 is potentially deductible.¹²

1
Office of the Law Revision Counsel. 26 USC 170 – Charitable, Etc., Contributions and Gifts
2
Internal Revenue Service. Charitable Contribution Deductions
3
Internal Revenue Service. Publication 526, Charitable Contributions
4
Internal Revenue Service. Tax Exempt Organization Search
5
Internal Revenue Service. Obtaining Copies of Exemption Determination Letter From IRS
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Internal Revenue Service. Public Disclosure and Availability of Exempt Organizations Returns and Applications
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Internal Revenue Service. Automatic Revocation of Exemption
8
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
9
Internal Revenue Service. Topic No. 506, Charitable Contributions
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Internal Revenue Service. Charitable Contributions – Written Acknowledgments
11
Internal Revenue Service. Instructions for Form 8283
12
Internal Revenue Service. Charitable Contributions – Quid Pro Quo Contributions