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From fables to yearly holiday commercials, the charitable spirit lives strong! The tough part is knowing if the gift you're giving might help you with your taxes. We've gathered many of the common questions and a few specifics to help you know if the good you are doing in the world might make its way back to you via your yearly tax return.
What Is a Charitable Organization?
Qualified charitable organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals.
Here are some examples of qualified and nonqualified organizations:
Qualified | Nonqualified |
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Still not sure? The IRS provides a way to search for qualified charitable organizations online at www.irs.gov.
What If My Contribution Benefited Me?
If you receive a benefit in exchange for a charitable contribution, the deduction is reduced by the value of the benefit received.
What Is a Deductible Contribution?
While most gifts we give to qualified charitable organizations seem obvious, some items might not actually qualify while other items may. Here is a helpful list based on common gifts we see given.
Deductible as Charitable Contributions | Nondeductible as Charitable Contributions |
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Athletic Tickets. No deduction is allowed for amounts paid to (or for the benefit of) a college or university in exchange for athletic event tickets or seating rights.
Membership Fees or Dues as a Donation. Membership dues or fees paid to qualified charitable organization, minus the value of any membership benefits, are deductible. If the annual fee is $75 or less, certain membership benefits are disregarded, even if you pay more than $75 annually. Examples of disregarded benefits include:
Free or discounted parking or admission to events or facilities.
Preferred access to, or discounts for organization goods or services.
Admission to member-only events for which the admission cost is a token amount or $12.50 or less.
Charitable Benefit Event Ticket. The deduction equals the ticket price, minus the value of the right to attend the event. This is true even if you did not actually attend the event. However, if the ticket is returned to the qualified charity for resale, the entire cost of the ticket is deductible.
How Do I Claim My Donations in My Yearly Tax Return?
Cash contributions to public charities and certain other organizations are limited to 60% of adjust gross income (AGI). The 60% limit does not apply to noncash charitable contributions, which are limited to 50% of AGI.
Example: Rachel made a cash donation of $8,000 to her favorite public charity. This was her only charitable contribution for the year. Rachel’s AGI is $10,000. Because of the 60% AGI limitation, she is only allowed a deduction of $6,000. The remaining $2,000 is carried forward for up to five years.
There are a few types of donations that have a 30% AGI limit. The 30% AGI limit applies to:
Donations to organizations that are not public charities, such as veterans’ organizations, fraternal societies, nonprofit cemeteries, and certain private foundations.
Donation of property that is used by a charity, other than capital gain property donated to a non-public charity.
Cash contributions for the use of (held in trust) a public charity instead of to the charity.
Deduction for student living expenses.
Certain capital gain property contributions to public charities. However, you can elect to apply the 50% AGI limit.
What If I Donate My Vehicle?
A popular way to help your favorite qualified charitable organization and free up some space in your garage is to donate your vehicle. First, make sure the qualified charitable organization you want to gift your vehicle will accept it; not all charitable organizations have the ability to take vehicles.
Next you'll want to obtain written acknowledgement from the organization, which includes details on the use or disposition of the vehicle by the donee organization. A copy of the written acknowledgement must be attached to the tax return.
Vehicle Valued at More than $500
A vehicle donation with a claimed fair market value (FMV) more than $500 is limited.
If the organization sells the donated vehicle without a significant intervening use of or material improvement by the donee organization, then the deduction is limited to the gross proceeds received from the sale.
If the organization sells the donated vehicle after a significant intervening use of or material improvement to the vehicle, the deduction is limited to its FMV.
If the organization gives or sells the vehicle at well below FMV to a needy individual in line with the purpose of the charity to provide transportation to the poor, the deduction is limited to FMV.
Vehicle Valued at Less than $500
A written acknowledgement is still required if the contribution is $250 or more. If the organization sells the vehicle without any significant intervening use of or material improvement for $500 or less, the deduction is equal to the lesser of $500, or FMV.
Example: Jack donates his car, worth $800, to a charity that sells it for $400 without any significant intervening use or material improvements. Jack can deduct $500 as a charitable contribution. Because his deduction is $250 or more, he still needs a written acknowledgement from the charity, but the acknowledgement is not required to be attached to his return.
What If I Donate Other Items?
There are many qualified charitable organizations who accept the donation of gently used items. To help substantiate a deduction for the fair market value of used items donated to charity, make a list of each item donated on a separate sheet of paper along with the following information.
Name and address of charity.
Date item was donated to the charity.
Description of each item donated.
Fair market value of each item at the time it was donated
Date each donated item was originally purchased or acquired.
Cost or other basis of each item donated.
Tax Pro Tip: Take a picture of all items donated. Keep the pictures for proof the items were in good or better condition at the time they were donated.
It is important to remember that no deduction is allowed for a charitable contribution of clothing or household items unless the clothing or household item is in good used condition or better. The IRS is authorized by regulation to deny a deduction for any contribution of clothing or a household item that has minimal monetary value, such as used socks and undergarments. (Now you see what a photo can come in handy!)
How do I know what my gently used items are worth?
For the tax year 2023, here is a fair market value (FMV) guide with many donatable items and how to value them for your taxes.
Men’s Clothing Jacket....................... $8–$26 Overcoat............... $16–$62 Pajamas.................... $2–$8 Raincoat.................. $5–$21 Shirt......................... $3–$12 Shoes...................... $4–$26 Shorts..................... $4–$10 Slacks...................... $5–$12 Suit........................ $16–$62 Sweater................... $3–$12 Swim trunks............. $3–$8 Tuxedo.................. $10–$62 Women’s Clothing Bathing suit............ $4–$12 Bathrobe................ $3–$12 Blouse..................... $3–$12 Boots......................... $2–$5 Coat....................... $10–$41 Dress....................... $4–$20 Evening dress...... $10–$62 Fur coat.............. $26–$415 Fur hat.................... $7–$16 Handbag................. $2–$21 Hat............................. $1–$8 Jacket....................... $4–$12 Nightgown.............. $4–$12 Pants suit................ $7–$26 Shoes...................... $2–$26 Skirt........................... $3–$8 Slacks...................... $4–$12 Suit.......................... $6–$26 Sweater................... $4–$16 Children’s Clothing Blouse....................... $2–$8 Boots....................... $3–$21 Coat......................... $5–$21 Dress....................... $4–$12 Jacket....................... $3–$26 Jeans....................... $4–$12 Pants....................... $3–$12 Shirt........................... $2–$6 Shoes........................ $3–$9 Skirt........................... $2–$6 Slacks........................ $2–$8 Snowsuit................. $4–$20 Sweater..................... $3–$8 | Household Goods Bakeware.................. $1–$3 Bedspread/quilt..... $3–$25 Blanket.................... $3–$16 Chair/sofa cover.. $16–$36 Coffeemaker.......... $4–$16 Curtains.................. $2–$12 Drapes.................... $7–$41 Fireplace set......... $21–$83 Floor lamp.............. $6–$52 Glass/cup............ $0.50–$2 Griddle.................... $4–$12 Kitchen utensils.. $0.50–$2 Lamp....................... $5–$78 Mixer/blender........ $5–$21 Picture/painting... $5–$207 Pillow......................... $2–$8 Plate..................... $0.50–$3 Pot/pan..................... $1–$3 Sheets....................... $2–$8 Throw rug............... $2–$12 Towel.................... $0.50–$4 Furniture Bed (full, queen, king).................... $52–$176 Bed (twin)............$36–$104 Bedroom set..$259–$1,037 Chair (upholstered)..... $26–$104 Chest..................... $26–$99 China cabinet..... $89–$311 Clothes closet...... $16–$52 Coffee table......... $16–$67 Crib and mattress............. $26–$104 Desk.................... $26–$145 Dining room set........... $156–$934 Dresser with mirror................. $21–$104 End table.............. $10–$52 Folding bed.......... $21–$62 Hi riser.................. $36–$78 High chair............. $10–$52 Kitchen cabinet.... $26–$78 Kitchen chair.......... $3–$10 Kitchen set......... $36–$176 Mattress (double)................ $13–$78 Mattress (single).................. $16–$36 Playpen................... $4–$31 Rugs...................... $21–$93 Secretary............ $52–$145 Sleeper sofa with mattress............. $88–$311 Sofa..................... $36–$207 Trunk....................... $5–$73 Wardrobe........... $21–$104 | Appliances Air conditioner..... $21–$93 Dryer..................... $47–$93 Electric stove...... $78–$156 Freezer............... $25–$100 Gas stove............ $52–$130 Heater..................... $8–$23 Microwave............ $10–$50 Refrigerator....... $78–$259 TV (color)............ $78–$233 Washing machine............. $41–$156 Miscellaneous Bicycle..................... $5–$83 Board game.............. $1–$3 Book (hardback)................ $1–$3 Book (paperback).............. $1–$2 Carriage................ $5–$100 CD.............................. $2–$5 Cell phone.......... $25–$100 Computer monitor................... $5–$51 Computer printer................... $5–$155 Computer system.............. $104–$415 Copier................. $41–$207 DVD........................... $2–$5 DVD player/VCR..... $8–$16 Edger....................... $5–$26 eReader................ $10–$50 Golf club (individual).............. $2–$26 Ice skates................ $3–$16 Luggage.................. $5–$16 Mower................ $26–$104 Mower (riding).............. $104–$311 Radio....................... $8–$52 Roller blades.......... $3–$16 Sewing machine................ $15–$88 Stereo................... $16–$78 Stuffed animal.... $0.50–$1 Tablet.................. $25–$150 Tennis racket............ $2–$5 Typewriter.............. $5–$26 Umbrella................... $2–$6 Vacuum cleaner... $16–$67 |
Note: You are responsible for establishing actual value of items donated.
Legal Disclaimer: This post contains general information for taxpayers and should not be relied upon as the only source of authority. Taxpayers should seek professional tax advice for more information. This information was current at time of posting; we are not responsible for updating this or any blog post/article for subsequent changes in the law or its interpretation.
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