Do Your Charitable Donations Qualify for a Tax Deduction? by Brendan Kurpis, CPA
Charitable giving is a great way to support causes that are important to you and your community while establishing a legacy of philanthropy for your family members to carry on long after you are gone. For some, it also allows them to reduce their tax bill when they understand some basic rules.
Who Can Claim Charitable Deductions?
The availability and amount of deductions you may claim for charitable contributions have evolved significantly over the past century. Under current law enacted in 2017, charitable deductions are available solely to taxpayers who itemize their expenses rather than claiming the standard deduction, which is $14,600 for individuals and $29,200 for married couples filing joint returns. For tax year 2025, these thresholds increase to $15,000 for individuals and $30,000 for married couples filing jointly. This generally means that a taxpayer’s qualifying itemized deductions in a year, including state and local taxes, real property taxes, mortgage interest, disaster losses and unreimbursed medical expenses, exceed their standard deduction.
To receive a charitable deduction, your donation also must be made to a qualifying nonprofit organization, including a registered tax-exempt 501(c)(3) charity; a nonprofit school, hospital or medical research facility; a veteran’s group; or a church, temple, synagogue or other religious organization. Expressly excluded from this list are donations to political groups or candidates for public office, chambers of commerce and other business leagues or organizations, civic associations and contributions to qualifying nonprofits for which you receive a benefit, such as event tickets. In addition, any money you give to a GoFundMe or crowdsourcing campaign is not considered a deductible charitable contribution unless it has a specific affiliation with a qualifying nonprofit entity.
How Much May I Claim as a Deduction for a Qualifying Charitable Donation?
The amount itemizing taxpayers may deduct for charitable purposes depends on the type of contribution you make. For example, through 2025, deductions for cash gifts are limited to 60 percent of your adjusted gross income (AGI), whereas noncash charitable gifts held for more than one year are limited to 30 percent of your AGI. With regard to volunteering activities, you may only deduct the mileage it takes for you to travel round trip from your home to the volunteering site.
If you are older than 70½, you also have an annual opportunity to claim a full deduction for up to $105,000 donated from your traditional IRA directly to an eligible charity via a qualified charitable distribution (QCD.) These direct IRA rollovers may also count toward your annual required minimum distributions (RMDs) from retirement accounts when you reach age 73 or 75 if you were born in 1960 or later.
What Qualifies as a Deductible Noncash Contribution?
There are many ways to be philanthropic and help those in need, whether you choose to donate your time and leadership or give gifts of cash or other assets, which can include gently used clothing and furniture, cars and boats, real estate and stocks, bonds and mutual funds. The amount you may deduct depends largely on the type of contribution you make. For example, if you itemize your deductions, you generally can deduct the fair market value of personal items, like clothing and furnishings, as long as the total amount for the year does not exceed 30 percent of your AGI. Donations of appreciated long-term investments, such as real estate, stocks and bonds, enable you to maximize the amount of your potential deduction and escape long-term capital gains tax of as much as 20 percent on the transfer of those assets.
What Else Do I Need to Remember to Claim Tax Deductions for Charitable Donations?
To support all your charitable deduction claims, you must maintain detailed records that include a description of your donation and a letter of acknowledgment or receipt from the receiving organization with the date and amount of your gift. For clothing valued at $500 or above, you will need a written appraisal from a qualified third party. Appraisal requirements also apply to property valued at $5,000 or more and closely held stock valued at $10,000 or more.
If you give regularly and generously, it also makes sense to consider a variety of different vehicles you may use to improve your tax efficiency, including the use of a donor-advised fund, a private foundation or even a charitable remainder trust (CRT) that allows you to draw income from your donation for a specific period of time.
Navigating the tax laws’ treatment of your philanthropic efforts while maximizing your tax efficiency requires advanced planning under the guidance of experienced professionals.
About the Author: Brendan Kurpis, CPA, is an associate director of Tax Services with Berkowitz Pollack Brant Advisors + CPAs, where he helps entrepreneurs and high-net-worth individuals implement federal and state tax compliance strategies that protect wealth and minimize tax liabilities. He can be reached at the CPA firm’s New York, N.Y. office at (646) 213-7600 or info@bpbcpa.com.
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