Tax & regulations What Is a charitable deduction?

The basics of charitable deductions

Taxpayers may be able to deduct certain donations of money or other assets like property, clothes, food and more from their U.S. federal taxable income when they give to qualifying 501(c)(3) public charities. The charitable deduction is meant to act as an incentive for Americans to be generous to charitable organizations.

Making donations that give rise to a charitable deduction can be a helpful way to lower your tax bill while also providing assistance to a cause you care about.

How to use charitable deduction

The charitable deduction is generally only available to taxpayers who choose to itemize their tax returns. Itemizing your return is the process of documenting and adding up certain expenses instead of taking a standard deduction. Subject to certain limitations and requirements, these deductible expenses may include the interest you pay on a qualifying home mortgage, qualifying medical expenses and donations you make to qualifying charities and, if available, donations to eligible charities. Generally, people itemize their returns when the combined total of their expected deduction is higher than the standard deduction.

Americans who don't itemize can take the standard deductions. How much is the standard deduction? It depends on your tax filing status. In 2024, individual tax filers are allowed to claim a $14,600 standard deduction, and in 2025, that number goes up to $15,000. Married couples filing jointly can claim a $29,200 deduction in 2024, and in 2025, that number goes up to $30,000. Heads of households can claim a $21,900 deduction in 2024, and in 2025, that number goes up to $22,500.¹

For people whose anticipated deductions are higher than these amounts, it probably makes sense to consider itemizing receipts and taking advantage of the charitable deduction.

Requirements and restrictions for charitable deductions

The tax treatment of a charitable donation depends on who is giving and receiving the donation as well as what type of asset is being donated. The organization receiving the donation must qualify for tax-exempt status under the U.S. Internal Revenue Code and must be registered as a 501(c)(3) organization.

Eligible organizations may include certain entities that operate solely for religious, educational, scientific or other permitted reasons. For example, organizations dedicated to stopping cruelty to animals and children as well as amateur sports organizations may qualify as eligible organizations.

There are also many other types of nonprofits that meet the requirements under the code. To find out if donating to an organization will make you eligible for a charitable deduction, the IRS has a search engine on its website.

Charitable deductions are also subject to other limits and restrictions depending upon the status of the taxpayer, the type of property contributed and the type of organization to which the donation was made.² For example, taxpayers generally cannot claim a charitable deduction for more than a certain percentage of their adjusted gross income (AGI). In 2024, taxpayers can claim a charitable deduction for no more than 60% of AGI for charitable cash contributions, with additional lower limitations that may apply, such as a 30% limitation for certain contributions of non-cash capital gain property. However, excess amounts can generally be carried over to five subsequent tax years.³ Additionally, if you receive some kind of tangible benefit for making a donation, then you are not allowed to deduct the full amount of your donation and generally must reduce your deduction by the value of what you received, subject to certain exceptions for small “token” value items received.⁴

In order to claim a charitable deduction, you must keep adequate records of your contributions, which vary depending on the amount and nature of the property contributed.

Asking for advice about charitable deductions

Although claiming a charitable deduction does not make sense for every taxpayer, it could make sense for you. A tax professional can help you think about a giving strategy and how to potentially take better advantage of charitable deductions.