You don't get a refund for donations, but you may reduce your taxable income

A donation to a may have access to charitable organization does not come back to you as a refund check. Instead, if you itemize deductions on your tax return, the amount you donated lowers the income the IRS taxes you on. The money you save depends on your tax bracket — someone in the 22% bracket saves $22 per $100 donated, while someone in the 12% bracket saves $12 per $100.

This only works if you itemize deductions. Most people take the standard deduction instead, which means donations do not reduce their taxes at all. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married filing jointly. If your total itemized deductions (donations plus mortgage interest, state taxes, and other may have access to expenses) do not exceed the standard deduction for your filing status, you get no tax benefit from donating.

The IRS publishes a list of organizations that count as may have access to charities. Donations to religious organizations, nonprofits, schools, and hospitals usually may have access to. Donations to individuals, political campaigns, and candidates do not. You can search for an organization's status on the IRS Tax Exempt Organization Search tool at irs.gov.

Key Takeaways

  • Donations reduce your taxable income only if you itemize deductions, which most taxpayers do not do.
  • The tax savings from a donation depends on your tax bracket — higher earners save more per dollar donated.
  • Only donations to may have access to charitable organizations count; you must verify the organization's status on the IRS website.
  • You need receipts or written acknowledgment from the charity for donations of $250 or more to claim them on your return.
  • If you take the standard deduction, donations provide no tax benefit, but you may still want to donate for other reasons.

When donations actually lower your tax bill

Donations lower your taxes only if two conditions are both true: the organization is may have access to, and you itemize deductions instead of taking the standard deduction. To itemize, you list out all may have access to expenses — charitable donations, mortgage interest, state and local taxes (capped at $10,000), medical expenses above 7.5% of your income, and a few others. The IRS then taxes you on income minus that total.

If your itemized deductions add up to more than the standard deduction for your filing status, itemizing saves you money. If they do not, the standard deduction is larger and you should take it instead. Many people donate regularly but still use the standard deduction because their other deductible expenses are small.

A strategy called bunching can help. If you are close to the itemization threshold, you can donate more in one year and less in another, pushing one year's deductions above the standard deduction threshold. For example, if you normally donate $3,000 per year and the standard deduction is $14,600, you might donate $7,000 in year one and $0 in year two. In year one, combined with other deductions, you might exceed $14,600 and itemize. In year two, you take the standard deduction.

Documentation you need to claim donations

The IRS requires different proof depending on the donation amount. For donations under $250, a bank record or receipt from the charity showing the name, date, location, and amount is enough. A credit card statement counts as a bank record. A text message receipt or email confirmation from the charity also works.

For donations of $250 or more, you need written acknowledgment from the charity. This is a letter or receipt from the organization stating the amount, whether you received anything in return (like event tickets), and the organization's name and tax ID number. The charity must provide this before you file your return. If you donated $250 to one organization multiple times, each donation of $250 or more needs separate acknowledgment, though one letter can cover multiple donations if they are listed separately.

Keep all receipts and acknowledgments with your tax records for at least three years. The IRS can ask to see them if you are audited. If you cannot find the documentation, you cannot claim the deduction, even if you know you donated.

How to report donations on your tax return

If you itemize deductions, you report charitable donations on Schedule A, which is part of Form 1040. Line 11 of Schedule A is for cash donations to may have access to charities. Line 12 covers noncash donations like clothing, household items, or vehicles. You add up all your itemized deductions on Schedule A and transfer the total to Form 1040.

If you use tax software, it will walk you through the questions and fill in Schedule A for you. If you file by hand or with a tax preparer, bring your receipts and acknowledgment letters. For noncash donations over $500, you also need to file Form 8283 and describe what you donated. For noncash donations over $5,000, you typically need a professional appraisal.

If you take the standard deduction, you do not file Schedule A and do not report donations anywhere on your return. The donations provide no tax benefit in that case.

Donations that do not count as deductions

Not every gift or payment counts as a charitable donation for tax purposes. Donations to individuals — even if they are in need — do not count. Donations to political campaigns, candidates, or political action committees do not count. Donations to foreign organizations usually do not count unless they are certain religious or educational groups with IRS approval.

Payments for goods or services do not count as full donations. If you pay $100 to attend a charity dinner and the meal is worth $40, only $60 counts as a donation. The charity should tell you the value of what you received. If you buy raffle tickets, auction items, or event admission, the amount above fair market value is the deductible part.

Donations to your church or synagogue count if the organization is tax-exempt. You can verify this on the IRS Tax Exempt Organization Search. Donations to private foundations sometimes count, but donor-advised funds and certain other structures have special rules — ask the organization or a tax preparer if you are unsure.

State tax deductions for donations

Most states follow federal rules: if you itemize on your federal return, you can also itemize on your state return and claim the same donations. A few states have their own rules. New York, for example, allows a charitable contribution deduction even if you take the federal standard deduction, though the state deduction is smaller. Illinois has no state income tax, so there is no state deduction for donations.

Check your state's tax agency website or ask a tax preparer about your state's rules. If you live in one state and donate to a charity in another, the donation still counts on both your federal and state returns as long as the charity is may have access to.

What happens if you overstate donations or claim ineligible ones

If you claim donations you did not make or claim donations to organizations that are not may have access to, the IRS can disallow the deduction and charge you back taxes plus interest. If the IRS determines the error was intentional, you may also owe a penalty of 20% to 75% of the unpaid tax.

The IRS matches donation claims against charity filings and conducts audits. If you are audited and cannot produce receipts or acknowledgment letters, you lose the deduction. If you claimed a noncash donation without an appraisal when one was required, the IRS can disallow it.

If you made an honest mistake — for example, you claimed a donation to an organization you thought was may have access to but was not — contact the IRS or file an amended return. Correcting the error yourself before the IRS finds it usually results in lower penalties than waiting to be caught.

Frequently Asked Questions

Can I deduct donations if I take the standard deduction?

No. The standard deduction and itemized deductions are mutually exclusive. You choose one or the other. If you take the standard deduction, donations provide no federal tax benefit. Some states allow a small deduction even when you take the federal standard deduction — check your state's rules.

Do I get a refund if my donations are more than my income?

No. Donations reduce your taxable income, but they do not create a refund if they exceed your income. If your deductions are larger than your income, you have a loss that carries forward to future years, but you do not receive money back.

What if the charity did not give me a receipt for a $250 donation?

You cannot claim the deduction without written acknowledgment from the charity for donations of $250 or more. Contact the organization and ask for a letter stating the amount and date. If they refuse or no longer exist, you cannot claim it. For future donations, ask for a receipt before you leave or request one by email immediately after.

Do donations to GoFundMe or Kickstarter count as tax deductions?

Usually not. GoFundMe and Kickstarter are platforms for personal fundraising and business projects, not may have access to charities. Donations to individuals do not count. If you donate through a platform to a registered nonprofit's fundraiser, it may count — check whether the nonprofit itself is on the IRS Tax Exempt Organization Search.

Can I deduct the value of my time or volunteer work?

No. You cannot deduct the value of your time, even if you volunteer for a may have access to charity. You can deduct out-of-pocket expenses you pay while volunteering — mileage at the IRS rate, supplies you buy, or travel costs — but not the labor itself.