Get Tax Breaks for Charitable Giving
You can do good and trim your tax bill at the same time.


Charity fund-raising reaches a fever pitch in the holiday season -- and your mailbox will likely be stuffed with appeals for help. Before you open your wallet, you need to understand the complex IRS record-keeping and other rules.
Also, make sure the charity is eligible to receive tax-deductible contributions. Search the IRS database of exempt organizations at https://apps.irs.gov/app/eos. (In the search field, put quote marks around the name of the charity.)
Beat the clock. If you make donations by check, pop them in the mail at least a couple of days before December 31, to give the Postal Service time to give them a 2015 postmark. A donation made by credit card is deductible in the year the charge is incurred, even if you don't pay the card bill until the following year.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You can make credit card contributions by going to the Web sites of the individual nonprofits, but you can save time with a one-stop giving site. American Express cardholders, for example, can use its Members Give service to make contributions to any of one million charities. The service sends a confirmation to your e-mail, and you can keep track of your donations at tax time. AmEx deducts a 2.25% processing fee, which the company notes is the same fee a charity would pay if you give directly using the card.
Donors who don't have time to choose charities just yet can set up a donor-advised fund. You get a tax deduction on the date you give the money to the fund, but you can select the charities to support in the future. Charles Schwab and Fidelity administer two of the largest donor-advised funds, and many community foundations operate funds as well.
Give away stuff. The IRS requires that any donations of household items, old clothing and furniture be in "good condition or better." You can get valuations of used items at www.goodwill.org or www.salvationarmyusa.org. Your guide on the good-condition rule: Ask yourself if you'd give the item to a friend or relative.
You can get a deduction of a single item that is not in good condition if the item is valued at more than $500 by attaching an appraisal and Form 8283 with the return. For example, a vintage designer wedding gown donated to a local museum could meet the test.
Keep good records. You must keep records for all donations, but the kind of documentation will depend on the amount of contributions and whether they are cash or noncash.
You cannot deduct a cash contribution unless you have a canceled check, bank statement, credit card statement or receipt from the organization. For each cash donation of $250 or more, you must have a written acknowledgement from the charity showing the amount and date of the contribution. The document also must note whether you received any goods or services in return for your donation.
For noncash contributions, the records will differ depending on whether a deduction for a contribution is less than $250, between $250 and $500, more than $500 and up to $5,000, or more than $5,000. For a small contribution, you must keep a receipt from the charity; for a donation worth more than $5,000, you must obtain an appraisal. (For more details, read IRS Publication 526, Charitable Contributions.)
Deduct out-of-pocket expenses. It's possible that you will step up your volunteer activities in the last few weeks of the year. You cannot deduct the value of your time, but you may be able to write off some of your expenses, such as the cost of supplies you bought to bake pies for a fund-raising event, for example.
You must keep records of all your expenses. If you spent $250 or more on a single expense -- perhaps an airline ticket to a charitable event -- you must receive an acknowledgement from the charity.
If you use your car for charitable purposes, you can deduct 14 cents a mile. Your written records must include the name of the organization you are helping and the dates you used your car for charitable purposes.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
5 Easy Weatherproofing Projects That Help Prevent Damage and Save on Insurance
Protect your home from storms and water damage with these simple weatherproofing upgrades — some may help reduce your home insurance premium.
By Paige Cerulli
-
If Trump Fires Jerome Powell, What Happens To Savings and Mortgage Rates?
President Donald Trump expressed his desire to remove Fed Chair Jerome Powell. If the president is successful, how would it impact your savings accounts?
By Sean Jackson
-
Which Generation Pays the Most Tax in the US?
Tax Burden Polls show that most people feel like taxes are unfair. But which age group bears the brunt of the tax burden in the United States?
By Kelley R. Taylor
-
How the Trump Harvard IRS Tax Threat Could Impact You
Tax Law Trump's latest higher education showdown raises fundamental questions that could reach beyond Harvard's nonprofit tax status.
By Kelley R. Taylor
-
Tax Day 2025: Don’t Miss These Freebies, Food Deals and Discounts
Tax Day You can score some sweet deals on April 15 in some select restaurants like Burger King, Shake Shack, and more.
By Gabriella Cruz-Martínez
-
Tax Time: Does Your Kid Influencer Owe Taxes?
State Tax Some minors are making big money on social media. Here’s how to know if they need to file taxes.
By Gabriella Cruz-Martínez
-
Did Florida’s Chance at $1,000 in Property Tax Rebates Vanish?
State Taxes The Florida Legislature bypassed Gov. Ron DeSantis’ wish to cut property taxes and instead voted to lower the state’s sales tax.
By Gabriella Cruz-Martínez
-
How Caregivers for Adults Can Save on Taxes in 2025
Tax Breaks Caring for your parent or spouse can be stressful, but the IRS offers tax breaks for qualifying taxpayers. Here they are.
By Kate Schubel
-
New South Carolina Income Tax Cut Might Eat Your Cash
State Taxes South Carolina’s flat income tax bill could have the majority of residents paying higher income taxes. Find out how.
By Kate Schubel
-
Tax-Deductible Home Improvements for Retirement in 2025
Retirement Taxes Your aging-in-place plan could benefit from the medical expense tax deduction. But watch out for capital gains and property taxes.
By Kate Schubel