Charitable Giving and Tax Deductions

Charitable gifts can reduce your tax, but the rules about which organizations qualify, what you have to prove and how much you can deduct trip up many givers. Starting in 2026 the rules also change: people who take the standard deduction can claim a limited charitable deduction, and people who itemize face a new floor. This guide covers both, along with records and some tax-smart ways to give.

What qualifies

You can deduct gifts to organizations such as religious, charitable, educational, scientific and literary groups, qualifying nonprofit hospitals, and certain veterans' organizations. You can ask the organization if it qualifies, and the IRS has an online search tool for tax-exempt organizations. You cannot deduct gifts to individuals, political candidates, most foreign organizations or for-profit groups. Publication 526 says foreign organizations generally do not qualify, with limited treaty exceptions for certain Canadian, Mexican and Israeli charities. A gift to a U.S. charity is also not deductible if it is earmarked for a specific foreign organization. The IRS says certain gifts to a U.S. qualified organization for a program run with a foreign charity may be deductible if the U.S. organization approves the program as furthering its own exempt purposes and keeps control over the funds. So giving directly to a charity in India or another country is generally not deductible, and giving through a U.S. charity depends on how the arrangement is structured.

If you receive something in return, such as dinner at a gala, you deduct only the amount above the value of what you received. Tuition-like payments are not deductible.

How much you can deduct

For most cash gifts to public charities, your deduction generally cannot exceed 60% of your adjusted gross income (AGI). Other limits of 50%, 30% and 20% apply to certain gifts, such as appreciated property, and gifts to some private foundations. If you give more than the limit, you can carry the excess forward for up to five years.

2026 changes

• Non-itemizer deduction. Starting in 2026, if you take the standard deduction you can still deduct up to $1,000 of cash gifts to qualified charities ($2,000 for joint filers). Gifts to donor-advised funds and to supporting organizations do not count for this deduction.
• 0.5% floor for itemizers. Starting in 2026, itemizers can deduct only the part of their charitable contributions that is above 0.5% of AGI.
• Higher-bracket limit. Beginning in 2026, total itemized deductions are cut back for taxpayers whose income reaches the 37% bracket, as covered in our guide to standard vs. itemized deductions.

Example 1: A single filer with AGI of $200,000 itemizes in 2026 and gives $10,000 in cash. The floor is 0.5% x $200,000 = $1,000, so the charitable deduction on Schedule A is $9,000.

Example 2: A married couple takes the standard deduction in 2026 and gives $3,500 in cash to their place of worship. They can deduct $2,000 as a non-itemizer deduction.

Records you must keep

• All cash gifts: a bank record or a receipt from the charity showing its name, the date and the amount. Cash includes checks, cards, online payments and payroll deductions.
• $250 or more at a time: a contemporaneous written acknowledgment from the organization stating the amount and whether you received goods or services.
• Noncash gifts under $250: a receipt that describes the items. For more than $500 total of noncash gifts, you generally file Form 8283. Items above $5,000 usually need a qualified appraisal.
• Mileage for volunteer work: 14 cents a mile for 2025 for charitable driving, or actual out-of-pocket costs.

The acknowledgment must be in your hands by the time you file your return. Keep it with your tax records. See how long to keep tax records.

Tax-smart ways to give

• Appreciated securities. Giving stock you held for more than a year generally lets you deduct fair market value (subject to the 30% limit) and avoid tax on the gain. See capital gains and losses.
• Qualified charitable distributions (QCDs). If you are at least 70 and a half, you can send up to $108,000 for 2025 ($111,000 for 2026) directly from an IRA to a charity. The amount is not included in income, but it cannot go to a donor-advised fund, and you cannot also deduct it. QCDs can count toward a required minimum distribution. See IRA and 401(k) contributions.
• Bunching. Combining two years of gifts into one, sometimes through a donor-advised fund, lets you itemize in alternate years. The new 0.5% floor and the non-itemizer deduction change the math, so recalculate before you bunch.

Common mistakes

• Missing the written acknowledgment for a large gift.
• Deducting the full value of items when the charity gave you goods or services.
• Deducting gifts to individuals or crowdfunding campaigns that are not set up through a qualified charity.
• Ignoring the 5-year carryforward on gifts above the limit.

Illinois

Illinois starts from your federal adjusted gross income and does not allow you to subtract federal itemized deductions, so gifts do not reduce your Illinois taxable income. See our Illinois guide.

How we can help

We review your giving plan before year-end, compare itemizing with the standard deduction, and document large or noncash gifts. Nonprofits can also see our page for nonprofits and religious organizations. See tax planning or contact us.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.