Donating to a Charity

Can I Get a Tax Break for Charitable Donations? 

The answer is...Yes, under certain circumstances. You get a tax break for donating all sorts of things to a qualified charity or organization, from used household items to collectibles, clothes, and even property. Expenses that build up because of volunteering activities are also deductible. 

Important: The rules for deducting charitable contributions changed, beginning with tax year 2022. Generally, you can now deduct charitable contributions only if you itemize deductions on Schedule A (Form 1040), Itemized Deductions.  Prior to 2022, an above-the-line deduction was available to taxpayers who chose the standard deduction. 

Qualified Charitable Organizations 

When donating, make sure it's to a qualified charity. Charities must meet IRS requirements to receive tax-deductible donations. The charities may be one of the following types: 

• Religious 

• Charitable 

• Scientific, literary, and educational 

• Dedicated to the prevention of cruelty to children or animals 

For a complete list of charities and to search for specific organizations, use the IRS Exempt Organizations Select Check tool. 

Keep a Record of Charitable Donations 

When donating, make sure you get a receipt or acknowledgment from the charity; otherwise, you won't be able to claim a deduction for your contributions. 

This is especially true for any donation—cash or goods—worth more than $250. For those, you must also have a written acknowledgment from the organization that notes any goods or services provided in exchange for your contribution. 

The receipt or acknowledgment should include the following: 

• Name of charity 

• Your name 

• Date of donation 

• Fair market value of donation 

• Value of any goods or services you received in return for your donation 

 
If the goods and services received from donating to a religious organization are exclusively used for religious purposes (like wine used in a ceremony), the acknowledgment must describe them as "intangible religious benefits." 

Donating Cash 

If you plan to donate money—whether by cash, check, or credit card—be sure to get a receipt, especially if you donate more than $250. For donations of more than $250, be sure to get a note from the organization as described above. 

For more information about donating to charities, see IRS Publication 526. 

Donating Goods and Property 

Items such as used clothing and household items in good condition can be donated, and the deduction will be determined by its Fair Market Value—generally what the item would sell for at a consignment or thrift store. 

Some charities, such as the Salvation Army and Goodwill, have a donation value guide, but most don’t. For more information, check out IRS Publication 561. 

Depending on the value of your donation, you may have to have it professionally appraised before donating it. Such items as jewelry, collectible cars, art, and antiques may or may not need appraising. 

Donating motor vehicles worth more than $500 means you'll need to attach Form 1098-C to your tax return when you file. The charity you donated to should send the form within 30 days of the donation or within 30 days after it was sold by the organization. Take a look at IRS Publication 4303, A Donor’s Guide to Vehicle Donation, for details about donating vehicles. 

Deducting Volunteer Work 

You could have incurred some unreimbursed expenses through the year while volunteering, and some of those expenses could be deductible—provided that the primary purpose of the expense was for the charitable organization and its work. 

You can deduct costs for required uniforms, stamps, stationery, and even mileage. Any unreimbursed lodging, meals, or transportation expenses required as part of your service to the charity can be deducted. 

As with donating goods, keep any receipts or paperwork to prove your deduction. 

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Whether you claim the itemized charitable deduction or take the standard deduction, 1040.com makes entering your information simple and straightforward for just one flat rate. Now that feels good! 

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