Types Of Charitable Donations That May Be Tax Deductible In 2025

As tax season approaches, many people look for ways to reduce their taxable income while supporting causes they care about. Charitable giving is a powerful way to do both, but understanding what qualifies as a tax-deductible donation is crucial. To claim a deduction, you must donate to a qualified organization and typically must itemize your deductions on your tax return. The rules can be complex, but knowing the various types of contributions you can make is the first step toward maximizing your philanthropic impact and potential tax benefits for the 2025 tax year.

Common Types of Tax-Deductible Donations

From simple cash gifts to more complex property contributions, the IRS allows for a wide range of donations to be deducted. Here’s a breakdown of the most common types of charitable donations you might consider.

1. Cash, Check, or Credit Card Donations

This is the most straightforward and common form of charitable giving. When you donate money via cash, check, debit card, or credit card, the amount you contribute is generally fully deductible. This also includes payments made through payroll deduction plans offered by many employers. These donations are relatively easy to track for tax purposes, making them a popular choice for many taxpayers.

To claim the deduction, it's essential to keep meticulous records. For any cash contribution, regardless of the amount, you must have a bank record (like a canceled check or credit card statement) or a written receipt from the charity. For any single contribution of $250 or more, you must have a contemporaneous written acknowledgment from the organization that details the amount of the donation and whether you received any goods or services in return.

2. Donations of Property or Goods

Donating non-cash items like clothing, furniture, household goods, or electronics to organizations such as Goodwill or The Salvation Army can also be tax-deductible. The amount you can deduct is typically the item's fair market value (FMV) at the time of the donation. Fair market value is what a willing buyer would pay a willing seller for the item, and it's your responsibility to determine this value. For items in good used condition or better, this is a great way to declutter while supporting a cause.

For these donations, documentation is key. Get a receipt from the charity for any non-cash donation. If the total value of your non-cash contributions for the year exceeds $500, you'll need to fill out and attach IRS Form 8283 to your tax return. For individual items valued at over $5,000, a qualified appraisal is generally required.

3. Stocks, Bonds, and Other Securities

Donating appreciated assets like stocks, bonds, or mutual funds that you've held for more than one year can be one of the most tax-savvy ways to give. When you donate these long-term appreciated securities directly to a charity, you can generally deduct the full fair market value of the asset at the time of the donation. A significant additional benefit is that you typically avoid paying capital gains tax on the appreciation, which you would have had to pay if you sold the security first and then donated the cash.

This dual tax benefit—a deduction for the full value and the avoidance of capital gains tax—makes it a highly efficient method of giving for those with investment portfolios. Due to the complexity of transferring securities, it’s best to coordinate directly with the charity and consult a financial advisor or tax professional to ensure the process is handled correctly.

4. Donations from an IRA (Qualified Charitable Distributions - QCDs)

If you are 70½ or older, you can make a Qualified Charitable Distribution (QCD) by directly transferring funds from your traditional IRA to a qualified charity. While you don't get a separate charitable deduction for a QCD, the amount transferred is excluded from your adjusted gross income (AGI). This can be more beneficial than a standard deduction because it can help you avoid being pushed into a higher tax bracket and may also reduce the amount of your Social Security benefits that are subject to tax.

A QCD can also satisfy all or part of your Required Minimum Distribution (RMD) for the year, which begins at age 73. For 2025, the annual limit for QCDs is subject to inflation adjustments, but it allows for a substantial tax-free transfer to support your favorite causes directly from your retirement savings.

5. Car, Boat, or Airplane Donations

Donating a vehicle, such as a car, boat, or airplane, is another popular option. The amount you can deduct depends on what the charity does with the vehicle. If the organization sells the vehicle, your deduction is generally limited to the gross proceeds from the sale. The charity must provide you with Form 1098-C within 30 days of the sale, which states the sale price, and this is the amount you can deduct.

However, if the charity makes significant intervening use of the vehicle (e.g., uses it to deliver meals) or makes material improvements before selling it, you may be able to deduct the vehicle's fair market value. In these specific cases, the charity must certify its use of the vehicle on Form 1098-C.

6. Out-of-Pocket Expenses While Volunteering

While you cannot deduct the value of your time or services when you volunteer, you can deduct certain out-of-pocket costs incurred while serving a qualified organization. This can include expenses for transportation, such as the cost of gas and oil if you use your car. You can deduct your actual expenses or use the standard mileage rate for charitable driving, which is set by the IRS annually (it was 14 cents per mile in 2024).

Other deductible expenses might include the cost of uniforms required for your volunteer work, parking fees, and tolls. You must keep reliable written records of these expenses, including receipts and logs, to claim them as a charitable contribution.

Understanding the Ground Rules for Tax-Deductible Donations

Before you start tallying up your contributions, it's vital to understand the fundamental rules that govern charitable deductions. Simply giving to a cause, no matter how noble, doesn't automatically guarantee a tax benefit. The IRS has specific requirements that must be met for a donation to be considered deductible.

First and foremost, the donation must be made to a qualified organization. This generally includes entities organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Most public charities and private foundations are 501(c)(3) organizations. You cannot deduct contributions made to individuals, political campaigns or candidates, or for-profit organizations.

Second, to benefit from the deduction, you must itemize your deductions on your tax return using Schedule A. If you take the standard deduction—which is a fixed dollar amount that varies by filing status—you cannot also deduct your charitable contributions. Since the standard deduction was increased significantly in recent years, fewer taxpayers now itemize. It's important to calculate whether your total itemized deductions (including charitable gifts, state and local taxes, mortgage interest, etc.) exceed your standard deduction amount.

Finally, record-keeping is non-negotiable. The type of documentation you need depends on the amount and type of your donation. For any cash donation, you need proof, such as a bank statement or a receipt from the charity. For single donations of $250 or more, you must have a formal written acknowledgment from the organization before you file your return. Failure to keep proper records can result in the IRS disallowing your deduction if you are audited.

Common Questions About Charitable Deductions

Navigating the specifics of tax-deductible donations often brings up a few common questions. Here are answers to some of the issues that taxpayers frequently encounter.

How Do I Know if a Charity is Qualified?

The easiest and most reliable way to verify an organization's status is to use the IRS's online tool called the Tax Exempt Organization Search. This database allows you to search for charities by name, location, or Employer Identification Number (EIN). The tool will confirm whether the organization is eligible to receive tax-deductible contributions.

Confirming this status is a critical step before making a significant donation. Donating to an entity that is not a qualified 501(c)(3) organization means your contribution will not be deductible, regardless of the organization's mission. Always check if you are unsure, especially when solicited by an unfamiliar group.

What are the Limits on Charitable Deductions?

Yes, there are limits on how much you can deduct, and they are generally based on a percentage of your Adjusted Gross Income (AGI). For most cash contributions made to public charities, you can deduct up to 60% of your AGI. For donations of non-cash assets, such as stocks or property, the limit is often 30% of your AGI.

These limits can vary depending on the type of organization you donate to (e.g., public charity vs. private foundation) and the type of property you donate. If your contributions in one year exceed the AGI limits, you can generally carry over the excess amount and deduct it over the next five years. Given the complexities, if you plan on making a very large donation, consulting a tax professional is highly recommended.

Do I Need a Receipt for Every Donation?

Proper documentation is essential, but the specific requirement varies by the donation's value. For any cash or non-cash donation under $250, you must keep a record, such as a canceled check, bank statement, or a simple receipt from the charity with its name and the date and amount of the contribution.

For any single contribution (cash or non-cash) of $250 or more, you need more than just a canceled check. You must obtain a contemporaneous written acknowledgment from the charity. This document must state the amount of the cash or a description of the property donated and confirm whether the organization provided you with any goods or services in exchange for your gift. You must have this document in hand before you file your taxes.

Final Thoughts

Charitable giving is a rewarding experience that allows you to support important causes and potentially lower your tax bill. By understanding the different types of deductible donations—from cash and property to appreciated stocks and volunteer expenses—you can make informed decisions that align with your financial and philanthropic goals. Always remember to donate to qualified organizations, keep meticulous records of your contributions, and stay aware of the rules regarding itemizing and AGI limits. For complex situations or large donations, seeking advice from a qualified tax professional is always a prudent step.

For more official information, you can consult these resources:

• IRS Charities & Non-Profits Page
• IRS Publication 526, Charitable Contributions