reporting gifts
When making a donation to a non-profit organization, please keep the following in mind*:
1. Confirm the donation is deductible. The donation must be made to a qualified organization (usually a 501(c)(3)). Donations to individuals, political groups, or most crowdfunding campaigns are not deductible. You can verify eligibility using the IRS Tax Exempt Organization Search tool.
2. Decide whether you can claim the deduction. Most taxpayers must itemize deductions to deduct charitable donations. File Schedule A (Form 1040) to claim charitable contributions. Itemizing only helps if total itemized deductions exceed the standard deduction. Starting tax year 2026, some taxpayers who do not itemize may deduct limited cash donations, but itemizing remains the primary method.
3. Keep proper documentation, such as cash or credit card donations (any amount); bank records, receipts, or acknowledgments showing the charity’s name, date, and amount. For single donations of $250 or more, you must have a written acknowledgment from the charity stating whether you received any goods or services in return. Do not attach receipts to your tax return—keep them for your records.
4. Report cash donations on Schedule A (Form 1040). If you received something in return (e.g., dinner, merchandise), you may deduct only the amount exceeding the fair market value of what you received.
5. Report non‑cash donations, such as clothes, property, or stock. Deduct the fair market value of donated items. If total non‑cash donations exceed $500, you must file Form 8283 with your return. If any single item (or group of similar items) exceeds $5,000, additional appraisal requirements apply.
6. Observe annual limits. Most charitable deductions are limited to a percentage of your adjusted gross income (AGI). Excess amounts can often be carried forward to future tax years.
7. File and retain records. File Form 1040 with Schedule A (and Form 8283, if required). Keep donation records for at least three years in case of IRS review.
Here's a quick checklist, just in case:
✔ Qualified organization
✔ Donation made by December 31
✔ Proper receipt or acknowledgment
✔ Schedule A completed
✔ Form 8283 attached if needed
Check out www.irs.gov for more info.
