Donating to charity not only supports meaningful causes but can also provide valuable tax deductions. To ensure you maximize these benefits in 2025, it’s essential to understand the IRS rules for cash donations, goods, volunteer mileage, and the necessary recordkeeping.:contentReference[oaicite:4]{index=4}
💵 Cash Donations
You can deduct cash contributions made to qualified organizations if you itemize your deductions. Generally, the deduction is limited to 60% of your adjusted gross income (AGI) for cash contributions to public charities. However, this limit may be lower (50%, 30%, or 20%) depending on the type of property donated and the type of organization. :contentReference[oaicite:11]{index=11}:contentReference[oaicite:12]{index=12}
🎁 Donations of Goods
When donating property, you can generally deduct the fair market value (FMV) of the items at the time of the contribution. However, the IRS requires that household items be in good used condition or better to qualify for a deduction. If the property is not in good used condition and you claim a deduction of more than $500, you must obtain a qualified appraisal and complete Form 8283. :contentReference[oaicite:19]{index=19}:contentReference[oaicite:20]{index=20}
🚗 Volunteer Mileage and Out-of-Pocket Expenses
If you use your car for charitable purposes, you can deduct the mileage at 14 cents per mile for 2025. Additionally, you can deduct unreimbursed out-of-pocket expenses directly related to your volunteer work, such as supplies or parking fees. However, you cannot deduct the value of your time or services. :contentReference[oaicite:27]{index=27}:contentReference[oaicite:28]{index=28}
📝 Recordkeeping and Documentation
Proper documentation is crucial for substantiating your charitable contributions:
- Cash Donations: Keep a bank record or a written communication from the charity, such as a receipt or acknowledgment letter. :contentReference[oaicite:31]{index=31}
- Donations of Goods: Obtain a written acknowledgment from the charity, especially for donations valued at $250 or more. :contentReference[oaicite:32]{index=32}
- Volunteer Mileage: Maintain a log detailing the date, miles driven, and the purpose of the trip. :contentReference[oaicite:33]{index=33}
⚠️ Special Rules for Contributions Over $250
For any single contribution of $250 or more, you must obtain a contemporaneous written acknowledgment from the charitable organization. This acknowledgment must include:
- The name of the organization
- The amount of any monetary contribution
- A description (but not the value) of any property contributed
- A statement indicating whether the organization provided any goods or services in exchange for the contribution, and if so, a description and good faith estimate of the value of those goods or services. :contentReference[oaicite:38]{index=38}
✅ Summary
By adhering to these guidelines and maintaining proper documentation, you can ensure that your charitable contributions are fully deductible and compliant with IRS regulations. For more detailed information, refer to IRS Publication 526, Charitable Contributions.:contentReference[oaicite:41]{index=41}
If you have specific questions about your donations or need assistance with recordkeeping, consider consulting a tax professional.:contentReference[oaicite:44]{index=44}
