How much can I deduct for charitable donations?

Cash donations to public charities (501(c)(3)) can be deducted up to 60% of your adjusted gross income (AGI). Appreciated stock donations are limited to 30% of AGI. Donations to private foundations are limited to 30% of AGI (cash) or 20% (property). Any excess carries forward for up to 5 years.

Do I need to itemize to deduct charitable donations?

Yes, in 2026 you must itemize deductions on Schedule A to claim charitable donations. The temporary $300/$600 above-the-line deduction from 2020-2021 has expired. Since the standard deduction is $15,000 (single) or $30,000 (married), many people need significant charitable giving plus other itemized deductions to benefit.

Can I deduct donations to GoFundMe or individuals?

No. Donations to individuals, GoFundMe campaigns for individuals, or political campaigns are not tax-deductible. Only donations to IRS-recognized 501(c)(3) organizations qualify. You can verify an organization's status using the IRS Tax Exempt Organization Search tool.

Charitable Donation Tax Deduction: Rules, Limits, and Strategies (2026)

Charitable donations can reduce your tax bill, but only if you itemize and follow IRS rules. With the standard deduction at $30,000 for married couples, strategic giving approaches like bunching and donor-advised funds can help you maximize the tax benefit.

Deduction Limits by Donation Type

AGI Limits for Charitable Deductions (2026)

Donation Type	Public Charity (501(c)(3))	Private Foundation	Donor-Advised Fund
Cash	60% of AGI	30% of AGI	60% of AGI
Appreciated stock (held 1+ year)	30% of AGI	20% of AGI	30% of AGI
Other appreciated property	30% of AGI	20% of AGI	30% of AGI
Ordinary income property	50% of AGI (at cost basis)	30% of AGI	50% of AGI

Excess Donation Carryforward

Year	Carried Forward Amount	Limit
Year 1	Donated $80,000 on $100,000 AGI (60% limit = $60,000 deductible)	$20,000 carries forward
Year 2	Deduct remaining $20,000 (if under limit)	Applied before current year gifts
Maximum carryforward	Up to 5 additional years	Lost if not used within 5 years

Itemizing vs Standard Deduction

When Charitable Giving Creates a Tax Benefit

Filing Status	Standard Deduction (2026)	Itemize If Total Deductions Exceed
Single	$15,000	$15,000
Married Filing Jointly	$30,000	$30,000
Head of Household	$22,500	$22,500

Example: MFJ Couple Deciding to Itemize

Deduction	Amount
State/local taxes (SALT cap)	$10,000
Mortgage interest	$12,000
Charitable donations	$5,000
Total itemized	$27,000
Standard deduction	$30,000
Better option	Standard deduction (save $3,000 more)

In this case, the $5,000 in charitable donations produces zero tax benefit because the standard deduction is higher.

Bunching Strategy

How Bunching Works

Instead of giving $5,000/year every year, “bunch” two or more years of gifts into one year to exceed the standard deduction threshold:

Approach	Year 1 Deduction	Year 2 Deduction	2-Year Tax Benefit
$5,000/year (no bunching)	$30,000 (standard)	$30,000 (standard)	$0 from donations
$10,000 in Year 1 (bunching)	$32,000 (itemize)	$30,000 (standard)	$2,000 × marginal rate

Bunching With a Donor-Advised Fund (DAF)

Step	Action	Tax Impact
Year 1	Contribute $20,000 to DAF	Deduct $20,000 in Year 1
Year 1	Itemize: $10,000 SALT + $12,000 mortgage + $20,000 DAF = $42,000	Save ($42,000 - $30,000) × rate
Year 2	Take standard deduction ($30,000)	No charitable deduction needed
Years 1-4	Grant DAF funds to charities over time ($5,000/year)	Charities still receive regular gifts

Donating Appreciated Stock

Why Stock Donations Are More Tax-Efficient Than Cash

Method	Donation Value	Capital Gains Tax Avoided	Income Tax Deduction	Total Tax Benefit
Sell stock, donate cash	$10,000	$0 (you pay ~$1,500 in capital gains tax)	$10,000	~$800 net
Donate stock directly	$10,000	$1,500 saved	$10,000	~$3,700

Assumes $4,000 gain, 15% LTCG rate, 22% marginal income tax rate.

Requirements for Stock Donation Deduction

Requirement	Details
Holding period	Must have held stocks for more than 1 year (long-term)
Deduction amount	Fair market value on date of donation
AGI limit	30% of AGI (vs 60% for cash)
Short-term stock	Deductible only at cost basis (not market value)
Documentation	Written acknowledgment from charity, appraisal if >$5,000

Documentation Requirements

By Dollar Amount

Donation Amount	Required Documentation
Under $250	Bank record, receipt, or written communication from charity
$250 - $499	Written acknowledgment from charity (before filing)
$500 - $4,999	Form 8283 Section A + written acknowledgment
$5,000+ (non-cash)	Form 8283 Section B + qualified appraisal
$250+ (any)	Must state whether goods/services were received in exchange

What the Receipt Must Include

Element	Required?
Organization name	Yes
Date of donation	Yes
Amount (cash) or description (property)	Yes
Statement of goods/services received	Yes
Good faith estimate of value of goods/services	Yes (if any provided)

Non-Cash Donation Values

Common Non-Cash Donation Deductions

Item	Typical Deductible Value	Documentation
Clothing (good condition)	Thrift store value (usually $1-$20/item)	Itemized list + receipt
Household goods	Thrift store value	Itemized list + receipt
Vehicle (sold by charity)	Actual sale price (Form 1098-C)	Form 1098-C if > $500
Vehicle (used by charity)	Fair market value	Written statement of intended use
Furniture	20-30% of original price	Photos + receipt
Electronics	Resale value (often very low)	Photos + receipt

Donation Valuation Methods

Method	When Used
Fair market value	Most property, publicly traded stock
Cost basis	Short-term property, inventory
Qualified appraisal	Non-cash property over $5,000 (required)
Charity’s sale price	Vehicles sold by the charity

Donor-Advised Fund (DAF) Details

How DAFs Work

Feature	Details
What it is	Charitable investment account managed by a sponsoring organization
Tax deduction	Deduction in the year you contribute to the DAF
Investment growth	Grows tax-free inside the DAF
Grants to charities	You recommend grants anytime (no time limit)
Minimum contribution	$5,000-$25,000 typically (Fidelity Charitable: $5,000)
Annual fees	0.60% is common
Irrevocable	Once contributed, money is committed to charity

DAF Providers Comparison

Provider	Minimum Initial Gift	Annual Fee	Investment Options
Fidelity Charitable	$5,000	0.60%	Fidelity funds
Schwab Charitable	$5,000	0.60%	Schwab funds
Vanguard Charitable	$25,000	0.60%	Vanguard funds
National Philanthropic Trust	$5,000	Varies	Multiple

Qualified Charitable Distribution (QCD)

Tax-Free IRA Donations for Those 70½+

Feature	Details
Eligibility	Age 70½ or older
Maximum	$105,000 per year (2024, indexed)
Donated from	Traditional IRA directly to charity
Tax benefit	Excluded from taxable income (better than deducting)
Counts toward RMD	Yes—satisfies RMD without increasing income
Itemizing required	No—works even with standard deduction

QCD vs Regular Donation Comparison

Factor	Regular Donation	QCD
Must itemize	Yes	No
Reduces AGI	No (only reduces taxable income if itemizing)	Yes
Affects Medicare premiums	No	Yes (lower AGI = lower IRMAA)
Affects Social Security taxation	No	Yes (lower AGI = less SS taxed)
Subject to AGI limits	Yes (60% limit)	No

Gifts That Are NOT Tax-Deductible

Donation Type	Deductible?	Why Not
Gift to an individual	No	Must go to 501(c)(3) organization
GoFundMe for a person	No	Not a qualified charity
Political contributions	No	Not a charitable donation
Lobbying organizations	No	Not classified as charitable
Foreign organizations (most)	No	Must be US-based 501(c)(3)
Value of your time/services	No	Can deduct related expenses but not time
Raffle tickets, event admission	Partially	Only amount exceeding fair market value
Tuition at religious schools	No	Considered tuition, not donation