If you plan to itemize deductions on your 2025 individual income tax return, charitable donations can help lower your tax bill. However, the IRS requires specific documentation to support these deductions. The type of substantiation you need depends on the amount donated and whether the gift was made in cash or property. In some situations, a written acknowledgment from the charity is mandatory.
Failing to meet these requirements could result in your deduction being denied, even if the donation itself was legitimate.
How to Substantiate Cash Charitable Donations
For cash donations under $250, acceptable proof includes a canceled check, bank record, or credit card statement. If you received goods or services in exchange for your donation—such as event tickets or merchandise—you generally must reduce your deduction by their fair market value. In this case, a contemporaneous written acknowledgment from the charity is required.
For cash contributions of $250 or more, the IRS always requires a contemporaneous written acknowledgment. This document must include:
- The amount of the contribution
- A statement confirming whether goods or services were received
- The value of any goods or services provided, if applicable
The acknowledgment must be received no later than the earlier of:
- The date you file your tax return, or
- The due date of your return, including extensions
If you haven’t received the required documentation yet and haven’t filed your 2025 return, there’s still time. Reach out to the charitable organization and request the acknowledgment as soon as possible.
Substantiating Noncash (Property) Donations
Charitable contributions of property valued at $250 or more also require a contemporaneous written acknowledgment. Instead of listing a dollar amount, the acknowledgment must include a description of the donated property, along with a statement regarding whether you received goods or services in return.
Additional IRS requirements apply for higher-value donations:
- More than $500: You must complete and attach Form 8283 (Noncash Charitable Contributions) to your tax return.
- More than $5,000: A qualified appraisal is generally required, along with an appraisal summary attached to your return.
One important exception: publicly traded securities do not require an appraisal, regardless of value.
Plan Ahead for Tax-Smart Charitable Giving
Charitable deductions are subject to various IRS limits and rules that can impact how much you’re allowed to claim. Strategic planning can help you maximize tax benefits while supporting causes you care about.
If you’d like guidance on what you can deduct on your 2025 tax return or want to build a tax-efficient charitable giving strategy for 2026, professional advice can make a meaningful difference. Contact us to get started.