How to make your donations count for both those in need—and your taxes.
’Tis the season for giving, and your generosity can give back to you by lowering your tax bill. With tax-savvy charitable donations, you can support causes you care about while reducing your taxable income on your federal return.
Qualifying donations to IRS-recognized 501(c)(3) organizations may allow you to deduct 20% to 60% of your adjusted gross income. However, not all contributions count—like cash gifts to a store fundraiser.
Here are 5 tax-savvy charitable donations you can make this holiday season.
1. Animal Rescues or Shelters
If you’re passionate about animal welfare, donating to local 501(c)(3) animal shelters can make a difference.
- Goats of Anarchy: This sanctuary rescues and rehabilitates disabled goats, offering options to donate, sponsor, or volunteer.
- Best Friends Animal Sanctuary: As the largest no-kill sanctuary in the U.S., they support adoption and disaster relief.
2. Tax-Savvy Charitable Donations: Thrift Stores
Decluttering? Your clothes, books, and furniture can help others. Donating to registered thrift stores ensures your items count for a tax deduction.
- Goodwill and Salvation Army are trusted options.
- In New York City, Housing Works funds healthcare and housing for those living with HIV/AIDS.
3. Toy Drives
Gifting toys can brighten a child’s holiday—and qualify for a tax deduction.
- Local children’s hospitals, churches, and groups often run drives.
- Marine Toys for Tots accepts cash donations online or unwrapped toy drop-offs across all 50 states.
- Some fire departments, like FDNY Firezone, are 501(c)(3) organizations.
4. Food Drives
Donating food to local food banks can support struggling families.
- Feeding Florida serves millions of Floridians through 9 regional food banks.
- No Kid Hungry helps feed children during school breaks and summer months.
5. Charitable Foundations
For specific causes—like education, climate action, or medical research—many charitable foundations qualify as tax-deductible.
- St. Jude Children’s Research Hospital provides free care for families with sick children.
- American Civil Liberties Union (ACLU) Foundation advances civil rights and liberties.
- Building Homes for Heroes builds mortgage-free homes for first responders and veterans.
Local schools, libraries, and other 501(c)(3) organizations are also excellent options for tax-savvy charitable donations.
How to Deduct Charitable Donations
To claim your donations on your tax return, itemize deductions on Schedule A and attach it to your IRS Form 1040. Keep records, including:
- Contribution date
- Organization name
- Cash amount or non-cash descriptions
For property donations over $500, you’ll need Form 8283.
Need Help with Your Donations?
If you have questions about tax-savvy charitable donations—or need help tracking contributions—contact Tax Problem Solver today. Our team is here to guide you through your year-end tax strategy.
And, of course, if you find yourself with tax problems of any kind, don't hesitate to contact us for help and guidance. That's what my team and I are here for.
You can contact me by one of the methods below in the blue box, or email me at Larry@TaxProblemSolver.com and we can review your specific issues or needs and determine your best solution. You can also click here to book a free consultation.
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