Charitable Giving and Tax Planning: Make Your Donations Count

Giving to charity allows you to support causes that matter to you—and may also reduce your tax bill. But a donation alone does not guarantee a deduction.

The organization’s eligibility, your records, and the applicable deduction rules all matter. With changes beginning in 2026, proactive tax planning can help you understand how your giving fits into your overall tax picture.

Confirm the Organization Qualifies

Before donating, check whether the organization is eligible to receive tax-deductible contributions. Many qualifying charities are 501(c)(3) organizations, but tax-exempt status alone does not always mean donations are deductible.

Use the IRS Tax Exempt Organization Search to review eligibility. Certain qualifying organizations, including some churches, may not appear in the database. Gifts directly to individuals generally are not deductible.

Check current status rather than relying only on a previous year’s information. Organizations required to file annual returns or notices generally lose their exemption automatically after three consecutive years of nonfiling.

Research How Your Donation Will Be Used

Tax eligibility is only one part of choosing a charity. Review its mission, programs, financial reports, and transparency to understand how your contribution supports its work.

Resources such as Charity Navigator, CharityWatch, and BBB Wise Giving Alliance can help inform your research.

Consider the organization’s results and accountability alongside its operating expenses.

Keep the Right Donation Records

Good documentation helps protect your deduction and makes tax preparation easier.

• For monetary donations: Keep a bank record or written communication from the charity showing its name, the date, and the amount.

• For each contribution of $250 or more: Obtain a written acknowledgment from the charity. This applies to cash and noncash gifts.

• If you receive something in return: The acknowledgment should describe the goods or services and provide a good-faith estimate of their value, when required. Your deduction generally covers only the amount exceeding that value.

You generally must receive the acknowledgment by the earlier of the date you file your return or its due date, including extensions. Request it promptly rather than waiting until tax season.

Understand the Rules for Donating Property

Donating stock, household items, real estate, or other property involves additional valuation and reporting requirements.

Form 8283 is generally required when your total deduction for noncash contributions exceeds $500. A qualified appraisal is generally required when claiming more than $5,000 for an item or group of similar items, although exceptions apply, including for publicly traded securities.

For certain tangible property, such as artwork, the charity’s use of the item can affect the deduction amount. Review these rules before transferring a valuable asset.

Review Deduction Limits and the 2026 Changes

Deduction limits depend on what you give and which organization receives it. Cash gifts to many public charities generally fall under a 60%-of-adjusted-gross-income limit. Appreciated long-term capital gain property often falls under a 30% limit, with other limits and exceptions possible.

Beginning with tax year 2026:

• If you do not itemize: Eligible cash contributions to certain qualified organizations may be deductible up to $1,000, or $2,000 for married couples filing jointly.

• If you itemize: Charitable contributions generally are deductible only to the extent they exceed 0.5% of your adjusted gross income, before applying other applicable limits.

For example, with an AGI of $100,000, the 0.5% floor is $500. If you make $2,000 in otherwise eligible contributions and itemize, generally $1,500 remains potentially deductible before other limitations.

Plan Your Giving Before Making a Major Donation

The timing and form of a contribution can affect its tax benefit. Before a substantial gift, review whether cash or appreciated assets better fit your charitable goals, available deductions, and financial needs.

At Cohn, Lopez & Associates, we provide proactive tax planning for individuals and businesses, helping you evaluate deductions within your broader financial picture. Located in Winter Park, we offer in-person and virtual appointments.

Let’s review your charitable giving plans and the records you’ll need to claim eligible deductions.

Call 407-960-3652 or schedule an appointment.