Tax Planning

Simple records can make filing easier and help support what you claim

Charitable giving can support an important cause, but making a donation does not automatically guarantee a tax deduction. Taxpayers must follow the applicable rules and keep records that show what they donated, when they donated it, and which organization received the contribution.

In most cases, taxpayers must itemize deductions on Schedule A to claim charitable contributions. Beginning with tax year 2026, however, some taxpayers who do not itemize may be able to deduct up to $1,000 in eligible cash contributions. The potential limit increases to $2,000 for married couples filing jointly. These contributions must go to certain qualified organizations.

Confirm that the organization qualifies

Donations made directly to individuals are not tax-deductible. This generally includes personal gifts and contributions to individual fundraising accounts. Before assuming a donation qualifies, taxpayers can use the Internal Revenue Service’s Tax Exempt Organization Search tool to check the organization’s eligibility.

Keep proof of every monetary donation

For cash, checks, credit card payments, and other monetary gifts, keep either a bank record or written communication from the charity. The documentation should show:

• The organization’s name
• The contribution date
• The amount donated

A simple recordkeeping system can make this easier. Taxpayers might create a digital folder for emailed receipts, keep paper acknowledgments in a labeled envelope, or maintain a donation spreadsheet throughout the year.

Request documentation for donations of $250 or more

A contribution of $250 or more, whether made in cash or property, requires a written acknowledgment from the qualified organization before the taxpayer can claim the deduction. The acknowledgment should describe the donated property or state the cash amount. It must also explain whether the taxpayer received goods or services in exchange for the donation and provide an estimated value when applicable.

For example, a taxpayer who pays to attend a charitable dinner may not be able to deduct the entire payment because part of the cost covered the meal or event benefits.

Document noncash contributions carefully

For donated clothing, furniture, equipment, and other property, taxpayers should keep a description of each item and its fair market value—the reasonable amount someone would pay for it in its current condition. Larger noncash donations may require additional documentation, Form 8283, or a qualified appraisal. Special rules may also apply to vehicles, inventory, and certain other property.

The taxpayer impact is straightforward: waiting until tax season to reconstruct a year’s worth of charitable giving can lead to missing receipts, incorrect values, and deductions that cannot be supported. Recording each donation when it happens helps taxpayers prepare an accurate return and preserve any legitimate tax benefit available to them.