Can I Deduct Gifts to Charities? 2025 Update
💝 Can I Deduct Donations to Charity? (2025 Update)
Giving back feels good — whether it’s dropping off a box of clothes at Goodwill, writing a check to your favorite nonprofit, or supporting your local church’s mission 💒. But when tax season rolls around, many people wonder: Can I deduct my donations?
The short answer: it depends on what (and how) you gave. Let’s break it down.
🕒 Donations of Time and Service
First things first — the bad news 😬: you can’t deduct the value of your time.
Volunteering at a soup kitchen, serving on a nonprofit board, or donating professional services — all amazing acts of generosity — aren’t deductible.
However, expenses related to volunteering can be.
For example, if you drive your car for charitable purposes, you can deduct 14¢ per mile in 2025 🚗 (plus tolls and parking).
💵 Cash Donations
Cash or monetary donations are the easiest to track and deduct. In 2025, you can generally deduct up to 60% of your Adjusted Gross Income (AGI) for cash gifts to qualifying charities.
If you give more than that, you can carry the excess forward for up to five years — so those larger, heartfelt donations still count later ❤️.
✅ Documentation Tip:
For any single donation over $250, you’ll need a written acknowledgment from the charity (showing the amount, date, and whether you received anything in return).
And remember — cash donations must be traceable (no shoeboxes of loose bills 😉). Use checks, bank transfers, or online payments for proof.
🛍️ Non-Cash Donations (Clothing, Furniture, etc.)
Donating non-cash items like clothing, furniture, or household goods is also deductible — within limits.
You can generally deduct up to 50% of your AGI for these gifts.
Each item must be in good used condition or better to qualify.
Keep detailed records: what you donated, when, and to whom.
📸 Pro tip: Snap photos of items before donating.
If you’re ever audited, photos and itemized lists can make or break your deduction.
Documentation by Donation Amount:
Under $250: Receipt from the organization.
$250–$5,000: Written acknowledgment from the charity with a description of items.
Over $5,000: Qualified appraisal required before you donate.
💡 Updated Examples for 2025
Example 1: Dinner for a Cause 🍽️
Michael and Jade attend a fundraising gala for a local animal rescue. Their tickets cost $150 each, but the dinner provided is valued at $50.
👉 Their deductible donation is $100 per ticket ($150 - $50 value of dinner).
Example 2: The Great Closet Cleanout 👗
Ella downsizes and donates five carloads of clothes and furniture to a community thrift store. Each drop-off is worth about $1,800, totaling $9,000 in “similar items.”
👉 Because the combined value exceeds $5,000, Ella must get an appraisal to claim the deduction — even though each trip was under that threshold individually.
🧾 Keep Your Documentation Organized
The IRS loves paper trails 📑 — and for charitable contributions, that’s especially true.
Keep these on file for at least three years after filing your return:
Donation receipts and acknowledgment letters
Appraisals for high-value gifts
Photos or lists of donated items
Proof of payment (for cash or check donations)
If you received anything in exchange for your donation — a dinner, gift bag, or concert ticket — remember to subtract the fair market value of what you received from your deduction.
✨ Final Thoughts
Giving to charity is one of the most fulfilling ways to make an impact — and when done strategically, it can also reduce your tax bill.
Whether it’s a one-time gift or ongoing contributions, the key is documentation and intention. Give from the heart ❤️ — but keep good records for the IRS.
And if you’re unsure how your giving fits into your 2025 tax strategy, I can help.
👉 Book a call with Lisa Brugman, EA & Associates, and let’s make sure your generosity brings both emotional and financial rewards.
