{"id":1208,"date":"2019-08-11T08:16:57","date_gmt":"2019-08-11T08:16:57","guid":{"rendered":"https:\/\/wcginc.com\/?p=1208"},"modified":"2026-01-26T16:37:03","modified_gmt":"2026-01-26T16:37:03","slug":"charitable-donations-revisited","status":"publish","type":"post","link":"https:\/\/wcginc.com\/blog\/charitable-donations-revisited\/","title":{"rendered":"Charitable Donations Revisited"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column]\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68b58fabe42d8\" class=\" wd-rs-68b58fabe42d8 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><\/p>\n<div class=\"overview\">\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Charitable donations can support causes you care about and may provide tax deductions.<\/li>\n<li>To be deductible, donations generally must go to qualified 501(c)(3) organizations, including most religious, educational, and nonprofit groups.<\/li>\n<li>Donations cannot be earmarked for specific individuals, though you can express a preference if the charity retains control.<\/li>\n<li>Time volunteered is not deductible, but cash, property, food, clothing, and certain out-of-pocket expenses can be.<\/li>\n<li>Donated items must generally be in good condition or better; receipts, pictures, or fair market value documentation are recommended.<\/li>\n<li>Special rules apply for vehicles, real estate, business inventory, and capital gain property.<\/li>\n<li>Cash donations require a financial record or receipt, and noncash donations over $250 need a receipt; items over $5,000 require a written appraisal.<\/li>\n<li>Deduction limits depend on your AGI: cash (60%), property (30%), capital gain assets (20%), with carryover rules for excess contributions.<\/li>\n<li>Only itemized deductions qualify for federal charitable contributions; some states may allow additional deductions even if federal itemization isn\u2019t used.<\/li>\n<\/ul>\n<\/div>\n<p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67330dfdbbeab\" class=\" wd-rs-67330dfdbbeab wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title img-right \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p><img decoding=\"async\" class=\"alignnone size-medium wp-image-23697\" src=\"https:\/\/wcginc.com\/wp-content\/uploads\/rave-300x183.jpg\" alt=\"\" width=\"300\" height=\"183\" srcset=\"https:\/\/wcginc.com\/wp-content\/uploads\/rave-300x183.jpg 300w, https:\/\/wcginc.com\/wp-content\/uploads\/rave.jpg 328w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/>Some say that the best nation is a \u201cdonation!\u201d While that might make you laugh (and hopefully this blog post does too), people donate to charities for a variety of reasons. Whether you are actively involved in the charity, or it has a special meaning in your heart, we are here to help you understand the tax implications of your charitable donation\u2026 \u2019cause the best deduction is a tax deduction.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67330cd1a2bda\" class=\" wd-rs-67330cd1a2bda wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Why_Make_Charitable_Donations\"><\/span>Why Make Charitable Donations<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Many people give to charities for a wide range of reasons- help those in need, makes people feel good, because of personal experience, gives people a sense of pride, and yes, for the tax deduction. Here are some examples of charities and their missions.<\/p>\n<p>The United Way, founded in Denver in 1887, focuses on improving education, achieving financial stability and promoting healthy lives. In 2011, Goodwill Industries whose mission is to help people find employment, helped 189,000 people obtain a job and spent over 82% of its revenue (or $3.5 billion) directly on employment and job training programs. Susan G. Komen spends 93% of its revenues on education, research, screening and treatment (only 7% is spent on administration, which is super efficient).<\/p>\n<p>Of course there are thousands of other charities, organizations and foundations performing broad services as well as providing very narrow and local community outreach activities. Regardless of the mission or objectives, not every organization qualifies as a charity.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67330d1e81cd7\" class=\" wd-rs-67330d1e81cd7 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Charity_Qualifications\"><\/span>Charity Qualifications<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>While it might seem like a charitable bequest to feed your teenage son, and an impossible task to keep him full, your charitable donations generally have to be made to 501(c)(3) organizations. Contributions to social clubs, political groups, individuals, and for-profit entities are not tax deductible. Churches and other religious organizations are usually considered tax exempt, and are the charities that usually come to mind including Goodwill Industries, Salvation Army, etc. Don\u2019t forget educational and certain theatrical organizations.<\/p>\n<p>Since the IRS issues the 501(c)(3) designation, it also naturally contains a database of all recognized charitable organizations and non-profits.\u00a0<a href=\"https:\/\/www.irs.gov\/charities-non-profits\/tax-exempt-organization-search\" target=\"_blank\" rel=\"noopener\">Click here<\/a>\u00a0to conduct a search to see if your\u00a0<a href=\"https:\/\/www.irs.gov\/charities-non-profits\/tax-exempt-organization-search\" target=\"_blank\" rel=\"noopener\">charitable donation<\/a>\u00a0is going to be a tax deduction. Foreign charities also do not qualify. The only exception is Canadian, Mexican and Israeli charities, but you generally must have foreign income in order to qualify for the deduction of these contributions.<\/p>\n<p>So that\u2019s one half of the coin\u2026 the recipient. Let\u2019s flip the coin and talk about what is being donated.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67330d305c801\" class=\" wd-rs-67330d305c801 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Earmarking_a_Charitable_Donation\"><\/span>Earmarking a Charitable Donation<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Yes you can apply preferences, but be very careful. To deduct a contribution made to a qualified organization, the donation must not be earmarked or directed by the donor. However, and this is a big however, if you notify the organization that you prefer the donation to go to a certain person, and you state that you understand it might not, then the contribution may be deducted.<\/p>\n<p>For example, your son goes on a charitable trip with a local church. If you donate money and you earmark it specifically for your son\u2019s expenses, etc., that contribution is not allowed. But if you say that you prefer the donation to go to your son but you understand that the charity has full authority to use the money as they wish, the contribution can be deducted. Most organizations understand this arrangement, and they further understand that future donations will probably cease if they don\u2019t \u201cmake the right choice.\u201d<\/p>\n<p>There are other situations where this preference arrangement can be applied. Sounds like Guido threatening to break your legs.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67330d423b85a\" class=\" wd-rs-67330d423b85a wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Tax_Deductible_Charitable_Donations\"><\/span>Tax Deductible Charitable Donations<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>You must also consider what you are donating. Time is one of your most valuable possessions, but you are unable to take a tax deduction for your time donated. IRS publications also prohibit taking a deduction for giving blood and buying raffle or lottery tickets.<\/p>\n<p>The most common charitable donations include clothing, household items, food, automobiles and cash. Other items that qualify include an interest in real property, business inventory and taxidermy property (we have seen stranger deductions). Each category of donations has different rules:<\/p>\n<p><strong>Clothing and Household Items.<\/strong>\u00a0Clothing and household items must be in good condition or better to qualify as a charitable contribution. The 10-year-old beanie bag that your kids \u201cneeded\u201d from your neighbor\u2019s garage sale will probably not make the list, but the shag rug from your mother-in law is likely fair game.<\/p>\n<p>A picture is worth a 1,000 words! Or more specifically, a picture is worth a $1,000! What do we mean? One of the safest ways to prove your charitable donation is to take a picture of the items. Receipts from\u00a0<a href=\"https:\/\/www.goodwill.org\/\" target=\"_blank\" rel=\"noopener\">Goodwill Industries<\/a>\u00a0and others are nice, but a picture can help seal the deal. As a side note, Goodwill is a wonderful organization\u2026 who takes your unwanted things and turns them into opportunities for people to work (and Yes, for people to pick some nice things at a reduced price).<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-670f768ef2030\" class=\" wd-rs-670f768ef2030 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none for-border-heading \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p><strong>Planes, Trains and Automobiles.<\/strong>\u00a0Most items that fall into this category are auctioned off and you receive a document for the proceeds of the sale. If the proceeds from your donation exceed $500, then you will need to send in a Form 1098-C with your tax return. We can usually send the 1098-C to the IRS as an attachment when we E-file your return.<\/p>\n<p>Speaking of automobiles, you should consider the proceeds from the auction. Your 2005 Honda might only sell for $300 at the auction, but you could sell this vehicle to a private party for $1,000 and then make a cash contribution to your desired organization. This way, your tax deduction increases by $700, and you do not have to research if the salvage or junk yard is a charity.<\/p>\n<p><strong>Food.<\/strong>\u00a0You can donate food to a tax exempt organization, as long as it is used to help further the organization\u2019s purpose or feed the less fortunate. The food must meet quality and labeling standards to be eligible as a contribution. The jury is still out on donating muffin bottoms\u2026<\/p>\n<p><strong>Cash.<\/strong>\u00a0Cash contributions include cash, check, electronic funds transfer, credit card payments, payroll deductions and text messages (Red Cross, United Way, etc.). Keep in mind that if you receive anything of value in exchange for your donation, the value of the donation will be reduced by the value received. For example, you contribute $500 to a school, but they provide tickets to a play valued at $100. Your deduction is limited to $400 but the since your charitable donation exceeds $75, the organization is required to furnish a disclosure statement.<\/p>\n<p>Also, you can take your cash and buy a bunch of school supplies at Wal-Mart, and deduct the money spent provided the school qualifies. This is super cool since the school needs supplies and you just saved a teacher the hassles of taking your cash, driving a car and buying the supplies directly.<\/p>\n<p><strong>Time.<\/strong>\u00a0As mentioned before, while you may contribute your time to a charity it is not tax deductible for two reasons. First, the IRS doesn\u2019t want to argue about what your time is worth. Yeah, sure, you bill at $125 per hour to your clients but the IRS doesn\u2019t want to hear it. Secondly, and this is fairly important, you don\u2019t have tax basis in your time. Huh?! All the things including cash that are donated were charged an income tax along the way.<\/p>\n<p>Example time! You earned $500. Paid taxes on $500. Took your remaining money and bought a TV\u2026 with after-tax dollars. Five years later you turn the TV into a charitable donation. You have tax-basis in the TV since the money you used to purchase it was taxed. Make sense? Good! Your time does not have tax basis.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67330d4d973a1\" class=\" wd-rs-67330d4d973a1 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"How_to_Value_Charitable_Donations\"><\/span>How to Value Charitable Donations<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>For cash, this is easy. But for those property donations where a receipt or written statement did not reflect the amount or value, there are several ways to assign the fair market value.<\/p>\n<p>First, the\u00a0<a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/p561.pdf\" target=\"_blank\" rel=\"noopener\">IRS Publication 561 Determining the Value of Donated Property<\/a>\u00a0provides some general information about household items and clothing, and provides more specific information on cars, boats, airplanes, jewelry, art, real estate, patents, etc. Second, and more practically, there are several online sources to help you piece together the value of your college freshman\u2019s unneeded high school clothes.<\/p>\n<p>Intuit \/ TurboTax created a site called\u00a0<a href=\"https:\/\/turbotax.intuit.com\/personal-taxes\/itsdeductible\" target=\"_blank\" rel=\"noopener\">ItsDeductible<\/a>. Much to our chagrin to give a nod to a competitor, TurboTax did a wonderful job with the creation of this online tool. Good stuff.<\/p>\n<p>Goodwill Industries has a\u00a0<a href=\"https:\/\/goodwillnne.org\/donate\/donation-value-guide\/\" target=\"_blank\" rel=\"noopener\">Donation Valuation Guide<\/a>\u00a0which illustrates general pricing for the items they sell in their stores.<\/p>\n<p>Salvation Army also lists several items and their associated\u00a0<a href=\"https:\/\/satruck.org\/Home\/DonationValueGuide\" target=\"_blank\" rel=\"noopener\">Donation Value Guide<\/a>. Remember, since 2007 the IRS, as directed by Congress, now requires that household items and clothing be in good used condition or better. What the heck does that mean? It\u2019s subjective for sure.<\/p>\n<p>eBay \/ craigslist can also be a good resource to show the fair market value of items that perhaps aren\u2019t easily valued. For example, if you donate a washing machine you demonstrate or prove the fair market value by finding one or two listings of the same item on eBay or craigslist. While these sites aren\u2019t listed as authoritative by the IRS per se, they do offer a sound basis for fair market values in our opinion.<\/p>\n<p>As mentioned earlier, another suggestion is take pictures as proof or evidence of the quantity and condition of the items donated. If you are donating a bag of clothes, this is perhaps unnecessary. But if you are donating more expensive items such as appliances, books, furniture, etc., pictures might tell a thousand words. This can also prove invaluable for large estate donations as well.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67330d55038e8\" class=\" wd-rs-67330d55038e8 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Other_Tax_Deductible_Charitable_Donations\"><\/span>Other Tax Deductible Charitable Donations<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p><strong>Students Living With You.<\/strong>\u00a0You may be able deduct qualifying expenses for a foreign or American student who lives in your home under a qualified exchange agreement, is not your relative and is a full-time student in the twelfth or lower grade.<\/p>\n<p><strong>Out of Pocket Expenses.<\/strong>\u00a0Some of your expenses associated with volunteer work and other contributions to charities may be deductible. Your expenses must be unreimbursed and directly connected with the services provided. They cannot be personal, living or family expenses. Some out of pocket expenses include donations made to underprivileged youth (such as tickets to a baseball game or a movie), required uniforms (think hospital volunteers), foster parent costs, expenses associated with being a church deacon,<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-67330d64d715b\" class=\" wd-rs-67330d64d715b wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Tax_Deduction_Limits_and_Documentation\"><\/span>Tax Deduction Limits and Documentation<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>You will need receipts for your donations, but in typical IRS fashion, there is an exception! Noncash donations of less than $250 do not need a receipt if it is impractical to acquire (now is your chance to get rid of that rug!). Donations above this amount will need a receipt, in addition to a written appraisal for items over $5,000.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-670f7752266be\" class=\" wd-rs-670f7752266be wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none for-border-heading \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>Cash donations cannot be deducted unless you have one of the following:<\/p>\n<ol>\n<li>A financial record showing the name of the organization, date and amount<\/li>\n<li>A receipt or written statement from the organization<\/li>\n<\/ol>\n<p>The days of saying you donate $20 each week in church are over since 2009. $20, $200, or $2\u2026 you need to satisfy either #1 or #2.<\/p>\n<p>The limits for charitable contributions, along with the standard deduction, were increased with the Tax Cuts and Jobs Act. The limits for your charitable contributions for 2019 are:<\/p>\n<ul>\n<li>Cash contributions are typically limited to 60% of your adjusted gross income (AGI).<\/li>\n<li>Property contributions are typically limited to 30% of your AGI.<\/li>\n<li>Contributions of capital gain assets are generally limited to 20% of your AGI.<\/li>\n<\/ul>\n<p>Whatever is \u201cleftover\u201d after the applied limit is carried forward to next year but it is not indefinite\u2026 there are some time limits on the carry forwards as well.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-6890de46a0d73\" class=\" wd-rs-6890de46a0d73 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title wd-font-weight-800 box-title-style-default font-primary wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Increased_Standard_Deduction\"><\/span>Increased Standard Deduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><p>In an effort to make taxes simpler, the standard deduction increased to $12,200 for single filers and $24,400 for married filing joint for the 2019 tax year. Unfortunately, charitable contributions are only deductible if you itemize your deductions on your tax return. Before you go digging through your receipts drawer, or risk having an argument about donating that awful rug, ask WCG (formerly Watson CPA Group) how it will affect your taxes.<\/p>\n<p>Another thing to keep in mind is your state tax deduction; while you might not be able to deduct a charitable donation on your federal tax return because you are unable to itemize your deductions, many states will still give you a tax deduction on your state tax return.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t<style><\/style>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<div class=\"info-box-wrapper\">\n\t\t\t\t<div id=\"wd-68b58fd9a0e61\" class=\" wd-rs-68b58fd9a0e61 wd-info-box wd-wpb text-left box-icon-align-top box-style- color-scheme- wd-bg-none border-btm-title faqs-wrap \">\n\t\t\t\t\t\t\t\t\t\t<div class=\"info-box-content\">\n\t\t\t\t\t\t<h2 class=\"info-box-title title box-title-style-default wd-fontsize-m\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t<div class=\"info-box-inner reset-last-child\"><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_organizations_qualify_for_tax-deductible_donations\"><\/span>Which organizations qualify for tax-deductible donations?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Generally, 501(c)(3) organizations like charities, religious groups, educational institutions, and nonprofits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_deduct_donations_made_to_individuals_or_political_groups\"><\/span>Can I deduct donations made to individuals or political groups?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No, donations to individuals, political organizations, or for-profit entities are not deductible.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_volunteering_my_time_tax-deductible\"><\/span>Is volunteering my time tax-deductible?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No, the IRS does not allow deductions for the value of your time.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_types_of_donations_can_I_deduct\"><\/span>What types of donations can I deduct?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cash, clothing, household items, food, vehicles, real estate, business inventory, and some out-of-pocket expenses.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_I_need_receipts_for_donations\"><\/span>Do I need receipts for donations?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, for cash donations and noncash contributions over $250; items over $5,000 require a written appraisal.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_donate_items_and_claim_a_higher_deduction_than_their_auction_proceeds\"><\/span>Can I donate items and claim a higher deduction than their auction proceeds?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, you can sell the item privately and donate the cash to increase your deduction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_there_limits_on_charitable_deductions\"><\/span>Are there limits on charitable deductions?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, depending on AGI: cash (60%), property (30%), capital gain assets (20%), with some carryover allowed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_I_need_to_itemize_to_deduct_charitable_donations\"><\/span>Do I need to itemize to deduct charitable donations?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Yes, federal deductions require itemization, though some states allow deductions even without itemizing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Can_I_donate_property_in_poor_condition\"><\/span>Can I donate property in poor condition?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No, items must be in good used condition or better to qualify for a deduction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_do_I_prove_the_value_of_donated_items\"><\/span>How do I prove the value of donated items?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Use receipts, photographs, IRS valuation guides, online marketplaces, or written appraisals for high-value items.<\/p>\n<\/div>\n\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t[\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n","protected":false},"author":6,"featured_media":44348,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-1208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Charitable Donations Revisited and the Tax Implications - WCG Inc<\/title>\n<meta name=\"description\" content=\"Whether you are involved in the charity, or it has a special meaning, we are here to help you understand the tax implications of your charitable donations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wcginc.com\/blog\/charitable-donations-revisited\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Charitable Donations Revisited\" \/>\n<meta property=\"og:description\" content=\"Whether you are involved in the charity, or it has a special meaning, we are here to help you understand the tax implications of your charitable donations.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/wcginc.com\/blog\/charitable-donations-revisited\/\" \/>\n<meta property=\"og:site_name\" content=\"WCG CPAs &amp; 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He has been an owner of three small businesses, and holds both a Bachelor\u2019s and Master\u2019s in Business Administration from the University of Wisconsin \u2013 Madison.","url":"https:\/\/wcginc.com\/author\/jason\/"}]}},"_links":{"self":[{"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/posts\/1208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/comments?post=1208"}],"version-history":[{"count":2,"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/posts\/1208\/revisions"}],"predecessor-version":[{"id":90220,"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/posts\/1208\/revisions\/90220"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/media\/44348"}],"wp:attachment":[{"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/media?parent=1208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/categories?post=1208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wcginc.com\/wp-json\/wp\/v2\/tags?post=1208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}