Charitable Giving and Your Taxes: What to Know Before Year-End

Have you already donated to charity this year or plan to give before year-end? The type of contribution you make can affect how much you can deduct — and the rules vary for cash, property, investments, and other gifts.

Planning ahead can help you maximize your potential tax benefit and avoid surprises when you file.

Cash Contributions

For 2026, taxpayers who don't itemize may be able to deduct up to $1,000 of qualifying cash contributions, or $2,000 for married couples filing jointly.

If you itemize, a new 0.5% AGI floor generally applies. This means only charitable contributions exceeding 0.5% of your adjusted gross income may be deductible, subject to other limitations.

For example, if your AGI is $100,000, the first $500 of qualifying charitable contributions generally won't be deductible.

Keep records of your donations, including receipts and written acknowledgments. Contributions of $250 or more generally require a contemporaneous written acknowledgment from the charity.

Property and Appreciated Assets

Donating property comes with additional rules. Your deduction is generally based on the property's fair market value at the time of the donation, rather than what you originally paid.

Donating appreciated assets, such as publicly traded securities, may provide additional tax benefits. If you've held qualifying property for more than one year, you may generally be able to deduct its fair market value while avoiding capital gains tax on the appreciation. Special AGI limits apply.

The type of property and how the charity uses it can also affect your deduction. Higher-value donations may require an appraisal or additional documentation.

When You Receive Something in Return

If you receive goods or services in exchange for a charitable contribution, you generally can deduct only the amount that exceeds the value of what you received.

For example, if you pay $300 for a charitable dinner and the meal is valued at $100, your potential deduction is generally $200.

What About Volunteering?

You can't deduct the value of your time, but certain unreimbursed expenses related to volunteering may qualify if you itemize. These can include eligible supplies and charitable mileage, which is 14 cents per mile.

Plan Before You Give

Charitable giving can support causes you care about while providing potential tax benefits. But the tax treatment depends on what you give, who receives it, and how the contribution is documented.

Before making a significant contribution this year, consider the tax implications and discuss your plans with your tax professional. A little planning before year-end can help you make informed giving decisions and avoid unnecessary tax surprises.