Introduction
Donating to charity not only supports important causes but may also provide tax savings. Under IRC
§ 170, taxpayers who itemize deductions can deduct qualified charitable contributions to eligible
organizations.
However, IRS rules limit how much you can deduct, and changes in tax laws affect how donations
are claimed in 2025. This guide explains who qualifies, what donations are deductible, and how to
claim your deduction correctly.
Are Charitable Donations Tax-Deductible in 2025?
Yes, but only if you itemize deductions on Schedule A (Form 1040).
Who Can Claim a Charitable Deduction?
- Individuals who itemize deductions instead of taking the standard deduction.
- Corporations making qualified donations (subject to IRS limits).
- Donations must be made to IRS-approved tax-exempt organizations.
Who Cannot Claim a Charitable Deduction?
- Taxpayers taking the standard deduction (unless tax laws change).
- Donations to individuals, political groups, or non-qualified organizations.
What Charitable Donations Are Tax-Deductible?
1. Cash Donations
- Donations to qualified 501(c)(3) organizations.
- Limited to 60% of AGI for individuals (IRC § 170(b)(1)(A)).
- Can be made via cash, check, credit card, or direct bank transfer.
2. Non-Cash Donations
- Clothing, furniture, books, and electronics donated to Goodwill, Salvation Army, or similar
organizations. - Must be in good condition to qualify (IRC § 170(f)(16)).
3. Appreciated Assets (Stocks, Real Estate, Cryptocurrency)
- Donating stocks or real estate avoids capital gains tax and qualifies for a deduction.
- Deduction is based on the fair market value (FMV) of the asset.
4. Vehicle Donations
- Deductible if donated to a qualified charity.
- The deduction is based on the sale price of the vehicle (Form 1098-C required).
5. Volunteer Expenses
- Out-of-pocket expenses for travel, supplies, and uniforms used for charity work.
- Standard mileage rate for charitable driving: $0.14 per mile (2025 IRS rate).
What Charitable Contributions Are NOT Deductible?
- Donations to political parties, candidates, or PACs.
- Contributions to individuals (e.g., GoFundMe donations).
- The value of volunteer time or services.
How to Claim the Charitable Donation Deduction
Step 1: Determine If You Should Itemize
- Compare total itemized deductions to the 2025 standard deduction:
- $14,600 (Single)
- $29,200 (Married Filing Jointly)
- $21,900 (Head of Household)
Step 2: Keep Proper Records
- Donations over $250 require a receipt from the charity.
- For non-cash donations over $500, file Form 8283.
- If donating stocks, real estate, or a vehicle, obtain a qualified appraisal.
Step 3: Report Donations on Schedule A (Form 1040)
- Enter total cash donations and non-cash contributions.
- Carryover excess contributions to future years if over the AGI limit.
IRS Forms & Compliance Checklist
- Form 1040 – Main tax return
- Schedule A (Form 1040) – Itemized deductions
- Form 8283 – Non-cash donations over $500
- Form 1098-C – Vehicle donations
Conclusion
Charitable donations remain tax-deductible in 2025, but you must itemize deductions to claim
them. Keeping proper records and filing the correct forms ensures you maximize your tax savings
while supporting charitable causes.
For expert tax planning, schedule a consultation with Anshul Goyal, CPA EA FCA, a licensed tax
professional and IRS representative.
Frequently Asked Questions (FAQs)
1. Can I deduct charitable donations if I take the standard deduction?
No, charitable deductions require itemizing on Schedule A.
2. What’s the maximum deduction for cash donations?
Cash donations are limited to 60% of AGI for individuals.
3. Do I need receipts for small donations?
For donations over $250, you must have written proof from the charity.
4. Can I deduct donations made to crowdfunding campaigns?
No, donations to GoFundMe or individuals are not tax-deductible.
5. Are political contributions tax-deductible?
No, donations to political campaigns, PACs, or lobbying groups are not deductible.
About Our CPA
Anshul Goyal, CPA EA FCA is a licensed Certified Public Accountant and an IRS Enrolled Agent (EA).
He specializes in charitable tax deductions, IRS compliance, and tax planning strategies.
Schedule a consultation today with Anshul Goyal, CPA, to maximize your tax savings!