5 tips for tracking charitable donations

Although the majority of charitable donations happen at the end of the calendar year, it’s never too soon to help your clients prepare for their tax filings.

Clients who have made or plan to make charitable donations during the year should keep good records of all their contributions. Organized records can make tax filing easier and help support a deduction if it’s claimed on a federal tax return.

Here are 5 tips to help taxpayers keep track of charitable donations:

1. General deduction rules. Generally, taxpayers must itemize deductions on Schedule A (Form 1040), Itemized Deductions, to claim a deduction for charitable contributions. However, beginning with tax year 2026, taxpayers who do not itemize may be able to deduct up to $1,000 in cash contributions, or $2,000 for married taxpayers filing jointly, made to certain qualified organizations.
2. Know what qualifies. Donations to individuals are not deductible. Examples of this include gifts or individual fundraising accounts. Taxpayers can use the Tax Exempt Organization Search tool on IRS.gov to verify whether an organization is eligible to receive tax-deductible contributions.
3. Keep proof of all cash donations. For any cash, check, or other monetary gifts, taxpayers should keep a bank record or written communication from the charitable organization showing the organization’s name, the date of the contribution and the amount donated.
4. Get a written acknowledgment for larger donations. Contributions of $250 or more, cash or property, require a written acknowledgment from the qualified organization before the deduction can be claimed. The documentation must include the amount of cash or description of the property. It also must state if the organization provided any goods or services in exchange for the gift. If so, description and a good faith estimate of the value of those goods or services must be provided.
5. Maintain records for non-cash donations. Taxpayers should keep records describing donated property and its fair market value. Additional documentation, including Form 8283, Noncash Charitable Contributions, and a qualified appraisal may be required for larger non-cash donations.

Special rules apply to donations of certain types of property such as automobiles, inventory and certain other readily valued property. For more information, refer to Publication 526. For information on determining the value of noncash contributions, refer to Publication 561.

Refer to the Intuit® Tax Pro Center IRS News page for continuous updates.