As taxpayers consider their gifts in 2025, the Internal Revenue Service (IRS) offers seven charitable giving tips. The IRS reminds taxpayers that giving money or goods to a tax-exempt organization before the end of the year can usually be deducted on that year’s federal income tax return. These seven tips may help you maximize benefits from charitable gifts.

1. Qualified Charities – Only gifts to qualified charities are deductible. The Tax Exempt Organization Search (TEOS) Tool on IRS.gov is useful for determining if a charity is qualified. Religious organizations with regular worship services are generally qualified, even though they may not be listed on the IRS database.
2. Itemized Deductions – Charitable gifts are deductible if you itemize on IRS Form 1040 Schedule A. Most taxpayers will itemize if their deductions exceed the standard deduction. Cash gifts up to 60% of your income are generally deductible. If you give over this amount, the excess may be carried forward and deducted over the next five years.
3. Cash, Checks, Credit Cards, Payroll – You need a bank record or written statement from a charity for cash or similar gifts to claim a charitable deduction. For a payroll deduction, you should save your paystub or W-2 statement.
4. Property Gifts – Clothing and household goods must be in good or better condition to qualify for a deduction. If you give clothing or household goods over $500 in value, you may obtain a qualified appraisal and attach it to your return. Gifts of $250 or more in value require a written acknowledgment from the charity with a description of the gifted property. There are special rules for vehicles and other property gifts. Visit IRS.gov for additional details.
5. Donor Benefits – When a donor receives goods or services in return for a contribution, the charitable acknowledgement of the gift must show the value of the benefits transferred. For example, a gift by a donor for the annual charity dinner event will lead to a deduction that is reduced by the value of the dinner.
6. IRA Owners – If you are an IRA owner over age 70½, you may make a gift from your IRA custodian directly to a qualified charity. The maximum 2025 IRA charitable rollover gift (called a qualified charitable distribution (QCD) by the IRS) is $108,000. An IRA charitable rollover gift would also qualify for part or all of your required minimum distribution (RMD). See Pub. 590-B on IRS.gov for more details.
7. Records – You should keep good records of all charitable gifts so that you can prepare your IRS Form 1040. Proper documentation is especially important for property gifts. For example, property gifts valued over $5,000 will require a qualified appraisal so it is vital to maintain adequate records of the appraisal to substantiate the claimed deduction. See IRS.gov for further information.