IRS Shares Tips for Tracking Charitable Donations

Charitable giving is an important way many people support causes they care about while also potentially receiving tax benefits.

Whether you regularly donate to organizations you believe in or make occasional contributions throughout the year, keeping good records is essential.

The IRS recently shared reminders to help taxpayers properly track charitable donations and maintain the documentation needed when filing federal tax returns.

Keep Records of Your Charitable Contributions

The IRS recommends keeping organized records of all charitable donations throughout the year.

Good records can make tax preparation easier and help ensure you have the information needed if you claim charitable deductions on your tax return.

Important records may include:

• Donation receipts
• Bank statements
• Written communications from charitable organizations
• Records showing the date and amount of donations

Understand the Rules for Claiming Charitable Deductions

Generally, taxpayers must itemize deductions on Schedule A (Form 1040) to claim a deduction for charitable contributions.

Beginning with tax year 2026, taxpayers who do not itemize may be able to deduct certain cash contributions:

• Up to $1,000 for individuals
• Up to $2,000 for married taxpayers filing jointly

These contributions must be made to qualified charitable organizations.

Not all donations qualify for a tax deduction.

For example, gifts made directly to individuals or personal fundraising accounts generally are not deductible.

Before making a donation, taxpayers can use the IRS Tax Exempt Organization Search tool to confirm whether an organization is eligible to receive tax-deductible contributions.

Keep Proof of Cash Donations

For cash donations, taxpayers should keep documentation showing:

• The organization’s name
• The date of the contribution
• The amount donated

This documentation can include:

• Bank records
• Credit card statements
• Written communications from the charitable organization

Keeping these records throughout the year can prevent challenges when preparing your tax return.

Get Written Acknowledgments for Larger Donations

For contributions of $250 or more, taxpayers generally need a written acknowledgment from the charitable organization before claiming the deduction.

The acknowledgment should include:

• The amount of cash donated or a description of donated property
• Whether the organization provided any goods or services in exchange for the donation
• A description and good-faith estimate of the value of those goods or services, if applicable

Keeping these acknowledgments with your tax records is an important part of maintaining proper documentation.

Maintain Records for Non-Cash Donations

Donations do not always come in the form of money.

If you donate property, clothing, equipment, or other items, you should keep records describing:

• What was donated
• The condition of the donated items
• The fair market value

Additional documentation, including IRS Form 8283, Noncash Charitable Contributions, or a qualified appraisal, may be required for larger non-cash donations.

Supporting Charities Supports Your Community

Organized charitable giving helps both taxpayers and the organizations working to make a difference.

At Penny Forward, donations help us continue providing financial education, resources, and support for people who are blind or have low vision.

Every contribution helps us continue our mission of building brighter financial futures.

Make Giving Part of Your Financial Plan

Tracking charitable donations is just one part of building strong financial habits.

By staying organized, keeping documentation, and understanding tax rules, you can make confident decisions about your charitable giving.

Thank you for supporting organizations that strengthen communities and create opportunities for others.