Charitable Giving & Tax Deductions – 2025 IRS Guidelines
The holiday season is a popular time for charitable giving. If you plan to deduct your donations on your 2025 federal income tax return, be sure to follow these updated IRS rules and documentation requirements.
1. Donate to Qualified Charities
Only donations made to IRS-recognized charitable organizations are deductible. These include:
- Churches, synagogues, temples, mosques, and other religious institutions
- Federal, state, and local government entities (if used for public purposes)
- Nonprofit organizations listed in the IRS Tax Exempt Organization Search
Verify an organization’s eligibility at IRS.gov
2. Keep Records of Cash Donations
Deductible cash donations include:
- Cash, checks, credit/debit card payments, electronic transfers, and payroll deductions
Required documentation:
- Bank records (e.g., canceled checks, credit card statements)
- Written acknowledgment from the charity
- Payroll records (e.g., pay stubs or W-2 showing donation)
3. Donated Goods Must Be in Good Condition
For non-cash donations such as furniture, electronics, or clothing:
- Items must be in good used condition or better
- If claiming over $500, a qualified appraisal may be required
- Use Form 8283 for non-cash donations exceeding $500
4. Documentation for Larger Donations
For donations of $250 or more, you must obtain a written acknowledgment from the charity that includes:
- Description of the donation
- Date of contribution
- Statement of whether goods or services were received in return
5. Year-End Giving Rules
Timing matters:
- Credit card donations charged by December 31, 2025 count for 2025—even if paid later
- Mailed checks qualify if postmarked by December 31, regardless of when cashed
6. Vehicle Donations
Special rules apply for donations of cars, boats, or airplanes:
- If claiming more than $500, you must file Form 1098-C with your tax return
- The charity must provide a written statement detailing the vehicle’s use or sale
New for 2025: Above-the-Line Deduction for Non-Itemizers
Under the One Big Beautiful Bill Act, taxpayers who do not itemize may now deduct:
- Up to $1,000 (Single) or $2,000 (Married Filing Jointly) for cash donations to qualified charities
- This deduction is above-the-line and does not require itemizing
Final Tip: Stay Organized
Keep all receipts, acknowledgments, appraisals, and IRS forms with your tax records. Proper documentation ensures smooth filing and maximizes your deduction.
For full details, visit the IRS Charitable Contributions page.