How do I claim charitable donation deductions in 2025?

To deduct charitable contributions, you must itemize deductions on Schedule A instead of taking the standard deduction. The special above-the-line deduction for cash donations that existed during COVID years has expired.

What qualifies: Donations must go to IRS-qualified 501(c)(3) organizations. You can verify an organization's status using the IRS Tax Exempt Organization Search tool at irs.gov. Cash, checks, property, and securities all qualify. Donations to individuals, political campaigns, or GoFundMe pages are generally not deductible.

Documentation requirements:

• Under $250: Bank record, receipt, or written communication from the charity showing the organization name, date, and amount
• $250 or more: Written acknowledgment from the charity that includes whether you received any goods or services in return
• Over $500 in non-cash donations: File Form 8283
• Over $5,000 in non-cash property: Requires a qualified appraisal (exceptions for publicly traded securities)

Deduction limits: Cash donations are limited to 60% of AGI for most charities (30% for veteran's organizations, fraternal societies, and certain private foundations). Donations of appreciated property held over a year are generally limited to 30% of AGI. Excess donations can be carried forward for up to 5 years.

Pro tip: Donating appreciated stock or mutual funds held over one year is more tax-efficient than donating cash. You avoid paying capital gains tax on the appreciation and still get the full fair market value as a deduction. A donor-advised fund (DAF) lets you bunch multiple years of donations into one year to exceed the standard deduction threshold.