Tax Resources for Charitable Giving

What Changed in 2025

The 2025 budget reconciliation act made significant changes to how charitable deductions work. These changes affect both itemizers and non-itemizers differently.

For Itemizers (Starting 2026)

• New 0.5% AGI Floor: Charitable donations below 0.5% of your adjusted gross income will not be deductible. For example, if your AGI is $200,000, only donations above $1,000 count toward your deduction.
• 35% Cap for Top Bracket: Taxpayers in the highest tax bracket will see the value of itemized deductions limited to 35 cents per dollar rather than 37 cents.
• Expanded SALT Deduction: The state and local tax deduction cap increased to $40,000 for 2025-2029 (up from $10,000), which may push more taxpayers into itemizing.

For Non-Itemizers (Starting 2026)

• New Above-the-Line Deduction: Non-itemizers can deduct up to $1,000 (single) or $2,000 (married filing jointly) for cash donations to qualified charities.
• Cash Only: This new deduction applies only to cash gifts, not donated goods or property.
• Excludes DAFs: Gifts to donor-advised funds do not qualify for the non-itemizer deduction.

IRS Resources

These official IRS publications provide authoritative guidance on charitable contributions:

• IRS Publication 526: Charitable Contributions IRS.gov

  The primary IRS guide covering what qualifies as a charitable contribution, who can receive deductible donations, how much you can deduct, and record-keeping requirements.

• IRS Publication 561: Determining the Value of Donated Property IRS.gov

  Official guidance on determining fair market value for non-cash donations including household items, clothing, vehicles, and other property.

• Charitable Contribution Deductions Overview IRS.gov

  General overview page with links to forms, FAQs, and current-year information about charitable deductions.

• Form 8283: Noncash Charitable Contributions IRS.gov (PDF)

  Required form for non-cash donations exceeding $500. Includes sections for different types of property and appraisal requirements.

Trusted Analysis and Explainers

These resources from reputable organizations explain the 2025 tax law changes in accessible language:

• Changes to Charitable Giving Under the One Big Beautiful Bill Act Tax Foundation

  Detailed analysis of how the new law affects both itemizers and non-itemizers, including the 0.5% AGI floor and new limitations on deduction value.

• The One Big Beautiful Bill Act's Changes to Charitable Deductions Bipartisan Policy Center

  Comprehensive explainer covering the four main provisions affecting charitable giving, with historical context on how these changes compare to previous tax reforms.

• What the One Big Beautiful Bill Act Means for Charitable Giving DAFgiving360 (Schwab Charitable)

  Practical guidance on eight key changes and suggested moves to consider for year-end giving strategy.

• How Will Non-Profits Be Impacted by the Big Beautiful Bill? Fisher Phillips

  Analysis from a legal perspective covering both donor incentives and nonprofit organizational impacts.

Record-Keeping Requirements

The IRS requires specific documentation for charitable contributions. Good records protect you in case of an audit.

For Cash Donations

• Bank record, receipt, or written communication from the charity showing the charity name, date, and amount
• For donations of $250 or more: Written acknowledgment from the charity (known as a "contemporaneous written acknowledgment" or CWA)

For Non-Cash Donations

• Receipt from the charity with organization name, date, location, and description of items
• Your own records showing fair market value, how you determined FMV, and original cost basis
• For donations over $500: Form 8283 required with your tax return
• For donations over $5,000 (most items): Qualified appraisal required