Donating to charity can result in a tax deduction—but only if you follow the rules.
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Chances are that your inbox is full of reminders to make your end-of-year charitable donations. After all, ’tis the season, and the annual giving cycle once again kicked off on #GivingTuesday—the Tuesday after Thanksgiving—with nonprofits hoping to carry the momentum through December. The timing dovetails neatly with year-end tax planning, which continues to influence how and when many Americans choose to give.
Giving USA’s most recent annual report shows that charitable giving rebounded in 2024. Total contributions from individuals, bequests, foundations, and corporations reached an estimated $592.5 billion, an increase of 6.3% in current dollars and 3.3% after adjusting for inflation, marking the first inflation-positive gain in several years. Giving by individuals—the largest segment—also rose, reaching an estimated $392.5 billion, an 8.2% increase in current dollars (up 5.1% after inflation). Despite that increase, many nonprofits are seeing fewer small-dollar donors.
Shrinking donor participation has been a problem since the 2017 Tax Cuts and Jobs Act (TCJA). By nearly doubling the standard deduction and limiting some itemized deductions, that law dramatically reduced the number of taxpayers who itemize—and itemization is still required to deduct charitable contributions on Schedule A. For 2025, the standard deduction increases again with inflation, to $15,750 for individuals and married couples filing separately, $31,500 for married couples filing jointly, and $23,625 for heads of household.
Note that the standard deduction numbers for 2025 are a little different than they were at the beginning of the year, thanks to the One Big Beautiful Bill Act (OBBBA) that President Donald Trump signed in July. Those numbers jump to $16,100 for individuals and married couples filing separately in 2026, while married couples filing jointly will see a deduction of $32,200 and heads of household will see a deduction of $24,150.
With fewer taxpayers itemizing today than a decade ago, the tax benefits of charitable giving have become increasingly concentrated among those using tax and charitable planning strategies.
Still, many Americans give for reasons far beyond tax savings. And regardless of whether you expect to claim a deduction, the underlying rules about documentation, organizational eligibility, and timing remain worth remembering as the year winds down.
Charitable Tax Tips
No matter whether you’re hoping for a tax break on your gift, or just feeling generous, here are some tips to keep in mind as you give this year:
Choose carefully. Remember, for federal income tax purposes, only donations to qualified charitable organizations are deductible. And even if you don’t plan on claiming a deduction, it’s a good idea to check out the credentials of a potential charitable organization before you donate. If you’re looking for a tax break, you can always confirm an organization’s charitable status through the IRS website using its Search Tool. You also can confirm charitable status by calling the IRS toll-free at 1.877.829.5500. Keep in mind that churches, synagogues, temples, and mosques are considered de facto charitable organizations and are eligible to receive deductible donations even if they’re not on the list—some exceptions apply, so be sure and ask if you’re not sure. Some sites, like Charity Navigator, can give you more information (including a look at tax returns and financials) about organizations you hope to support. You can also consult Forbes’ list of America’s Top 100 Charities (here’s the list from 2024) and can apply the financial ratios we include in the list to charities that aren’t on it.
Get a receipt—even for cash. As a best practice, always ask for a receipt. Almost any charitable organization will happily offer you one. You don’t have to submit this documentation with your tax return, but you need to be prepared to provide it in case of an audit. Cash donations, no matter the amount, must be substantiated by a bank record such as a canceled check or credit card receipt, clearly annotated with the name of the charity, or in writing from the organization. The writing must include the date, the amount, and the organization that received the donation.
Don’t overlook payroll deductions. Your employer may participate in a charitable giving program that allows you to make contributions directly from your paycheck—many companies even match your donation, increasing your impact. If you make a contribution by payroll deduction, record-keeping rules require that you retain a pay stub, Form W-2, or other document furnished by your employer that shows the total amount withheld as a charitable donation, along with the pledge card that shows the name of the charity. For federal workers, a pledge card with the name of a Combined Federal Campaign will meet these requirements.
Pay attention to donor incentives. A charitable donation is deductible only to the extent that the donation exceeds the value of any goods or services received in exchange. If you make a donation and receive something in exchange—anything from a coffee mug to a fancy sit-down dinner—you can only deduct the cost of your donation less the value of the item received. If you’re not sure of the value of an item or service received after a donation, just ask. Most charitable organizations will do the calculation for you and document the value of your donation in their thank-you letter or receipt.
Consider bunching your gifts. If you’re not giving enough each year to make itemizing worthwhile, consider bunching your gifts—making a significant donation in one year to take advantage of the deduction and giving less in other years. For example, if you always give $10,000 to your alma mater, consider giving $20,000 in 2025 and skipping a year. You’re giving the same total amount but more likely to benefit from the deduction if you bunch.
Donate appreciated assets. Donating property that has appreciated in value, like stock, can result in a double tax benefit. Normally, appreciated assets are subject to capital gains tax when you sell. But when you donate appreciated assets to charity, you avoid paying capital gains tax and can claim a charitable deduction (if you itemize) for the full value of the asset—so long as you’ve owned it for at least one year. With the markets up double digits once again this year and several sectors reaching new highs, donating high-performing stock can be a win-win for your favorite charity and your taxes.
Invest in a donor-advised fund. A donor-advised fund, or DAF, can be an excellent option for charitable giving, particularly if you are bunching donations or donating a large amount of appreciated stock. A DAF is an account established at a public charity. Donating to a donor-advised fund typically makes you eligible for an immediate tax deduction even if the funds aren’t immediately turned over to charity. The funds in a DAF are generally invested, and you can make grant recommendations to any qualified public charity, dribbling the money out over time. A DAF is a great vehicle to use if you want to secure a deduction this year but distribute support to individual charities over several years.
Don’t forget about retirement assets. Typically, if you want to donate from your IRA, you’d have to withdraw those funds, pay the tax, and then make the donation. There is an exception: If you are 70½ or older, a qualified charitable distribution (QCD) allows you to roll funds directly from your IRA to a qualified charity. Those amounts can be used to satisfy your required minimum distributions (RMDs) for the year, and the amount donated is excluded from your taxable income—you won’t even have to itemize to do it. The total amount of QCDs that you can exclude from your gross income is $108,000 in 2025. In addition, as part of the SECURE 2.0 law, you can make a one-time election for a QCD to a split-interest entity, like a charitable annuity. That amount, initially $50,000, adjusts for inflation and is $54,000 in 2025. (The total amount of QCDs that you can exclude from your gross income increases to $111,000 in 2026, while the one-time election for a QCD to a split-interest entity will be $55,000 in 2026.)
Remember that you can’t deduct the value of your time. The IRS does not allow a charitable deduction for volunteering your services, even if you can easily put a dollar amount on your time. So if, as an architect, you usually charge $350 per hour and use that time to help a qualified charitable organization, you’re allowed a deduction of $0—that’s not a typo. The same rule applies whether you’re a lawyer, doctor, artist, nurse, accountant, or writer at Forbes.
You can, however, deduct expenses related to volunteering. While you can’t deduct the value of your time, most out-of-pocket expenses relating to volunteering are deductible so long as they’re not reimbursed to you or considered personal. Out-of-pocket charitable expenses that might be deductible include parking fees and tolls and other travel expenses. For 2025, the mileage rate for service to charitable organizations remains 14 cents per mile, a figure fixed by Congress and unchanged for decades despite increases in fuel prices. Some organizations may reimburse volunteers at a higher internal rate—often by referencing the business mileage rate—but only unreimbursed amounts based on the statutory charitable rate are deductible. As with other donations, keep good records for out-of-pocket expenses—documentation is critical.
Keep great records. Good records are always important when it comes to charitable giving, but even more so when it comes to donations of noncash items. You can generally take a deduction for the item’s fair market value—the price a willing buyer would pay to a willing seller. If you’re self-documenting the donation because it’s less than $500, be specific, noting the description and condition of the items. If you contribute property worth more than $5,000, you must obtain a written appraisal of the property’s fair market value. If you make noncash contributions (generally over $500), you may also be required to fill out one or more parts of Form 8283, Noncash Charitable Contributions.
Check the calendar. That means that to make your gifts count during the tax year, you must make them by December 31. Some rules apply. For example, contributions made by text message are deductible in the year you send the text message if the contribution is charged to your telephone or wireless account. Credit card charges—even if they’re not paid off before the end of the year—are deductible so long as the amount is captured by year-end. Similarly, checks written and mailed by the end of the year will be deductible for this year even if they aren’t cashed in 2025. But good intentions alone don’t count—announcing that you intend to donate assets will not qualify for a deduction in the current tax year unless you make good on the pledge during the year.
What’s Next
The end of the year is a good opportunity to try your hand at charitable giving—it’s easy, for example, to make cash gifts. But if you’re considering more significant gifting, including long-term projects like trusts, pledges, or charitable foundations, reach out to an advisor who can help you identify and work toward your charitable goals.
And as we ease into 2026, expect changes. Under the new tax law, taxpayers who do not itemize can claim a charitable deduction of up to $1,000 for single filers and $2,000 for those married filing jointly. One quick caveat: this deduction does not apply to contributions made to Donor-Advised Funds (DAFs) or private foundations.
