Planning to make charitable donations this year? Here’s what you need to know about charitable deductions, tax savings, and the latest rules affecting charitable giving.

Giving to charity can support causes you care about while potentially reducing your federal tax liability. However, not every donation qualifies for a tax deduction, and specific IRS rules apply to cash, property, and other charitable contributions.

Generally, tax-deductible charitable contributions must be made to an eligible organization, such as a qualified 501(c)(3) nonprofit. You’ll also need to meet certain documentation, valuation, and filing requirements to claim the deduction on your tax return.

Recent tax legislation has also changed some rules surrounding charitable giving, making it especially important to understand how the current rules may affect your tax planning.

Kiplinger recently highlighted these changes and what taxpayers should know about charitable donations and taxes. Here’s a closer look at the key rules and how charitable giving may affect your tax return.   

Which Charitable Donations Are Tax-Deductible? 

Just because you’re donating to a good cause doesn’t necessarily mean you can deduct the contribution on your tax return. The IRS only allows deductions for donations made to certain qualified organizations.

For example, if you donate through a GoFundMe campaign to help a struggling local business or a neighbor whose home was damaged by a fire, your contribution generally isn’t tax-deductible. While the money may be going toward an important cause, the recipient may not be a qualified charitable organization.

So, how can you tell whether your donation qualifies?

The IRS makes it fairly easy to check. Its online Tax Exempt Organization Search tool allows you to look up an organization and determine whether it is tax-exempt and eligible to receive tax-deductible charitable contributions.

Qualified organizations can include charities and nonprofit organizations recognized under Section 501(c)(3) of the tax code. Religious organizations, including many churches, may also qualify. Donations to eligible organizations are generally deductible if you meet the IRS requirements for claiming the contribution.

New Charitable Deduction for Cash Donations

Starting with the 2026 tax year, taxpayers who take the standard deduction may be able to claim a new tax deduction for certain cash charitable contributions. This change, made permanent under the 2025 tax legislation, gives people who don’t itemize another potential tax benefit for charitable giving.

Here’s how much you may be able to deduct:

• Single filers: Up to $1,000
• Married couples filing jointly: Up to $2,000

The deduction applies to cash donations and cash-equivalent payments, including donations made by credit card or through services such as PayPal. The donation must be made to a qualifying public charity.

There are some important exceptions. The deduction generally doesn’t apply to contributions to private non-operating foundations or donor-advised funds.

A New Tax Break for Cash Donations 

Starting with your 2026 taxes, there’s a permanent rule coming out of the latest tax bill that’s great news if you take the standard deduction. You can now write off cash donations to qualified charities without needing to itemize.

• Single filers: Deduct up to $1,000
• Married filing jointly: Deduct up to $2,000

To qualify, these need to be plain old cash or cash equivalents (like paying with a credit card or PayPal) made directly to public charities. Keep in mind that gifts to donor-advised funds or private non-operating foundations don’t count for this specific break.

What If You Give More? (Itemizing in 2026)

If you plan to give more than the standard deduction cap ($1,000 for singles or $2,000 for married couples), you’ll still need to itemize your deductions to get the full tax benefit. Itemizing opens up a few extra ways to save:

Donating Property: You can generally deduct the fair market value of donated items. Just keep in mind that if the item went up in value while you owned it, you might have to trim down your deduction by the amount it appreciated. If it lost value, your write-off is simply capped at what it’s worth today. (Check out IRS Publication 561 if you need help figuring out fair market value.) 

Volunteer Work Expenses: While you can’t deduct the value of your time, you can write off out-of-pocket costs you pay while volunteering. For example, if you drive back and forth for volunteer work, you can deduct parking, tolls, and either your actual gas and oil costs or a flat 14¢ per mile—provided you aren’t reimbursed.   

What’s Changing with Charitable Deductions in 2026

If you itemize and give to charity, the 2025 tax bill added a few new twists you’ll want to know about heading into 2026.

There’s now a deduction floor. Your total itemized charitable giving, cash and non-cash combined, has to clear 0.5% of your adjusted gross income before any of it qualifies for a deduction. Fall short of that, and none of it counts.

The tax benefit itself is capped. This one matters most if you’re a high earner. In the past, someone in the top 37% bracket saved 37 cents in taxes for every dollar they donated. Now that benefit tops out at 35 cents on the dollar, no matter your bracket. Your total deduction amount still isn’t limited, just how much of a tax break you actually get from it.

Cash donations are still capped at 60% of your AGI, so that piece stays the same.

The Older Rules Still Apply

Beyond the new changes, the existing limitations haven’t gone anywhere:

• Get something in return for your gift, like a meal or event tickets? You’ll need to subtract the value of that benefit from your deduction.
• Donated property is generally limited to 50% of your AGI, and capital gain property caps out at 30%.
• Can’t use the full deduction this year? You can typically carry the extra forward for up to five years.

Keep Your Paperwork in Order

Any single gift of $250 or more needs a written acknowledgment from the charity, spelling out the amount (or a description, if it’s property) and whether you received anything in exchange. Donate property worth $500 or more and you’ll need to file Form 8283. And if you’re handing over a car, boat, or plane valued above $5,000, plan on getting it appraised too. It’s worth reading through IRS Publication 526 and the Schedule A instructions before you file, since there are a few more details to watch for.

Consider “Bunching” Your Donations

If your itemized deductions usually land just under the standard deduction, bunching might be worth a look. The idea is to combine two years of giving into a single tax year so you clear that threshold and actually benefit from itemizing. Pairing this with a donor-advised fund works well too. You make one larger contribution now, take the full deduction this year, and then distribute the money to charities gradually over the following years, even in years when you go back to claiming the standard deduction.

QCDs Offer a Different Kind of Benefit

If you’re 70½ or older, you can send up to $111,000 directly from a traditional IRA to charity through a qualified charitable distribution. You won’t get a deduction for it, but you also won’t owe income tax on that money, and it counts toward your (RMD)   required minimum distribution without raising your AGI. For many retirees, that ends up being the better option regardless of whether they itemize.

Bottom line: hold onto your receipts throughout the year, and if any part of this feels confusing, it’s a good idea to loop in a tax professional before filing season picks up.