Table of Contents
You can deduct your contributions only if you make them to a qualified organization. To become a qualified organization, most organizations other than churches and governments, as described below, must apply to the IRS.
Generally, only the five following types of organizations can be qualified organizations.
-
A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). It must be organized and operated only for one or more of the following purposes.
-
Religious.
-
Charitable.
-
Educational.
-
Scientific.
-
Literary.
-
The prevention of cruelty to children or animals.
Certain organizations that foster national or international amateur sports competition also qualify.
-
-
War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions.
-
Domestic fraternal societies, orders, and associations operating under the lodge system.
Note. Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals.
-
Certain nonprofit cemetery companies or corporations.
Note. Your contribution to this type of organization is not deductible if it can be used for the care of a specific lot or mausoleum crypt.
-
The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions.
Note. To be deductible, your contribution to this type of organization must be made solely for public purposes.
Example 1. You contribute cash to your city's police department to be used as a reward for information about a crime. The city police department is a qualified organization, and your contribution is for a public purpose. You can deduct your contribution.
Example 2. You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Because the trust fund is part of the U.S. Government, you contributed to a qualified organization. You can deduct your contribution.
-
Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations.
-
Most nonprofit charitable organizations such as the Red Cross and the United Way.
-
Most nonprofit educational organizations, including the Boy (and Girl) Scouts of America, colleges, museums, and daycare centers if substantially all the childcare provided is to enable individuals (the parents) to be gainfully employed and the services are available to the general public. However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct.
-
Nonprofit hospitals and medical research organizations.
-
Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs.
-
Nonprofit volunteer fire companies.
-
Public parks and recreation facilities.
-
Civil defense organizations.
Internal Revenue Service
International Returns Section
P.O. Box 920
Bensalem, PA 19020-8518.
To deduct your contribution to a Mexican charity, you must have income from sources in Mexico. The limits described in Limits on Deductions, later, apply and are figured using your income from Mexican sources. Those limits also apply to all your charitable contributions, as described in that discussion.
Generally, you can deduct your contributions of money or property that you make to, or for the use of, a qualified organization. A gift or contribution is “for the use of” a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement.
The contributions must be made to a qualified organization and not set aside for use by a specific person.
If you give property to a qualified organization, you generally can deduct the fair market value of the property at the time of the contribution. See Contributions of Property, later.
Your deduction for charitable contributions is generally limited to 50% of your adjusted gross income, but in some cases 20% and 30% limits may apply. In addition, the total of your charitable contributions deduction and certain other itemized deductions may be limited. See Limits on Deductions, later.
Table 1 in this publication lists some examples of contributions you can deduct and some that you cannot deduct.
If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive. Also see Contributions From Which You Benefit under Contributions You Cannot Deduct, later.
If you pay more than fair market value to a qualified organization for merchandise, goods, or services, the amount you pay that is more than the value of the item can be a charitable contribution. For the excess amount to qualify, you must pay it with the intent to make a charitable contribution.
Example 1.
You pay $65 for a ticket to a dinner-dance at a church. All the proceeds of the function go to the church. The ticket to the dinner-dance has a fair market value of $25. When you buy your ticket, you know that its value is less than your payment. To figure the amount of your charitable contribution, you subtract the value of the benefit you receive ($25) from your total payment ($65). You can deduct $40 as a charitable contribution to the church.
Example 2.
At a fund-raising auction conducted by a charity, you pay $600 for a week's stay at a beach house. The amount you pay is no more than the fair rental value. You have not made a deductible charitable contribution.
Example 1.
You pay $300 a year for membership in an athletic scholarship program maintained by a university (a qualified organization). The only benefit of membership is that you have the right to buy one season ticket for a seat in a designated area of the stadium at the university's home football games. You can deduct $240 (80% of $300) as a charitable contribution.
Example 2.
The facts are the same as in Example 1 except that your $300 payment included the purchase of one season ticket for the stated ticket price of $120. You must subtract the usual price of a ticket ($120) from your $300 payment. The result is $180. Your deductible charitable contribution is $144 (80% of $180).
-
Any rights or privileges, other than those discussed under Athletic events, earlier, that you can use frequently while you are a member, such as:
-
Free or discounted admission to the organization's facilities or events,
-
Free or discounted parking,
-
Preferred access to goods or services, and
-
Discounts on the purchase of goods and services.
-
-
Admission, while you are a member, to events that are open only to members of the organization if the organization reasonably projects that the cost per person (excluding any allocated overhead) is not more than $8.90.
-
You get a small item or other benefit of token value.
-
The qualified organization correctly determines that the value of the item or benefit you received is not substantial and informs you that you can deduct your payment in full.
-
The organization is:
-
The type of organization described in (5) under Types of Qualified Organizations, earlier, or
-
Formed only for religious purposes, and the only benefit you receive is an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in commercial transactions outside the donative context.
-
-
You receive only items whose value is not substantial as described under Token items, earlier.
-
You receive only membership benefits that can be disregarded, as described earlier.
You may be able to deduct some expenses of having a student live with you. You can deduct qualifying expenses for a foreign or American student who:
-
Lives in your home under a written agreement between you and a qualified organization (defined later) as part of a program of the organization to provide educational opportunities for the student,
-
Is not your relative (defined later) or dependent, and
-
Is a full-time student in the twelfth or any lower grade at a school in the United States.
-
Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). A legally adopted child is considered your child.
-
Your brother, sister, half brother, half sister, stepbrother, or stepsister.
-
Your father, mother, grandparent, or other direct ancestor.
-
Your stepfather or stepmother.
-
A son or daughter of your brother or sister.
-
A brother or sister of your father or mother.
-
Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.
Although you cannot deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be:
-
Unreimbursed,
-
Directly connected with the services,
-
Expenses you had only because of the services you gave, and
-
Not personal, living, or family expenses.
Table 2 contains questions and answers that apply to some individuals who volunteer their services.
-
They are unreimbursed out-of-pocket expenses to feed, clothe, and care for the foster child.
-
They must be mainly to benefit the qualified organization.
Example 1.
You are a troop leader for a tax-exempt youth group and you help take the group on a camping trip. You are responsible for overseeing the setup of the camp and for providing adult supervision for other activities during the entire trip. You participate in the activities of the group and really enjoy your time with them. You oversee the breaking of camp and you help transport the group home. You can deduct your travel expenses.
Example 2.
You sail from one island to another and spend 8 hours a day counting whales and other forms of marine life. The project is sponsored by a charitable organization. In most circumstances, you cannot deduct your expenses.
Table 2. Volunteers' Questions and Answers
If you do volunteer work for a qualified organization, the following questions and answers may apply to you. All of the rules explained in this publication also apply. See, in particular, Out-of-Pocket Expenses in Giving Services.
| Question | Answer |
| I do volunteer work 6 hours a week in the office of a qualified organization. The receptionist is paid $6 an hour to do the same work I do. Can I deduct $36 a week for my time? | No, you cannot deduct the value of your time or services. |
The office is 30 miles from my home. Can I deduct any of my car expenses for these trips? |
Yes, you can deduct the costs of gas and oil that are directly related to
getting to and from the place where you are a volunteer. If you do not want to figure your actual costs, you can deduct 14 cents for each mile. |
| I volunteer as a Red Cross nurse's aide at a hospital. Can I deduct the cost of uniforms that I must wear? |
Yes, you can deduct the cost of buying and cleaning your uniforms if
the hospital is a qualified organization, the uniforms are not suitable for everyday use, and you must wear them when volunteering. |
| I pay a babysitter to watch my children while I do volunteer work for a qualified organization. Can I deduct these costs? |
No, you cannot deduct payments for child care expenses as a
charitable contribution, even if they are necessary so you can do volunteer work for a qualified organization. (If you have child care expenses so you can work for pay, get Publication 503, Child and Dependent Care Expenses.) |
-
Air, rail, and bus transportation,
-
Out-of-pocket expenses for your car,
-
Taxi fares or other costs of transportation between the airport or station and your hotel,
-
Lodging costs, and
-
The cost of meals.
You may be able to deduct as a charitable contribution the reasonable and necessary whaling expenses paid during the year in carrying out sanctioned whaling activities. The deduction is limited to $10,000 a year. To claim the deduction, you must be recognized by the Alaska Eskimo Whaling Commission as a whaling captain charged with the responsibility of maintaining and carrying out sanctioned whaling activities.
Sanctioned whaling activities are subsistence bowhead whale hunting activities conducted under the management plan of the Alaska Eskimo Whaling Commission.
Whaling expenses include expenses for:
-
Acquiring and maintaining whaling boats, weapons, and gear used in sanctioned whaling activities,
-
Supplying food for the crew and other provisions for carrying out these activities, and
-
Storing and distributing the catch from these activities.
http://www.irs.gov/irb/2006-47_IRB/ar12.html.
There are some contributions you cannot deduct. There are others you can deduct only part of.
You cannot deduct as a charitable contribution:
-
A contribution to a specific individual,
-
A contribution to a nonqualified organization,
-
The part of a contribution from which you receive or expect to receive a benefit,
-
The value of your time or services,
-
Your personal expenses,
-
A qualified charitable distribution from an individual retirement arrangement (IRA),
-
Appraisal fees,
-
Certain contributions to donor advised funds after February 13, 2007, or
-
Certain contributions of partial interests in property.
Detailed discussions of these items follow.
You cannot deduct contributions to specific individuals, including the following.
-
Contributions to fraternal societies made for the purpose of paying medical or burial expenses of deceased members.
-
Contributions to individuals who are needy or worthy. This includes contributions to a qualified organization if you indicate that your contribution is for a specific person. But you can deduct a contribution that you give to a qualified organization that in turn helps needy or worthy individuals if you do not indicate that your contribution is for a specific person.
Example. You can deduct contributions for flood relief, hurricane relief, or other disaster relief to a qualified organization. However, you cannot deduct contributions earmarked for relief of a particular individual or family.
-
Payments to a member of the clergy that can be spent as he or she wishes, such as for personal expenses.
-
Expenses you paid for another person who provided services to a qualified organization.
Example. Your son does missionary work. You pay his expenses. You cannot claim a deduction for your son's unreimbursed expenses related to his contribution of services.
-
Payments to a hospital that are for a specific patient's care or for services for a specific patient. You cannot deduct these payments even if the hospital is operated by a city, state, or other qualified organization.
You cannot deduct contributions to organizations that are not qualified to receive tax-deductible contributions, including the following.
-
Certain state bar associations if:
-
The state bar is not a political subdivision of a state,
-
The bar has private, as well as public, purposes, such as promoting the professional interests of members, and
-
Your contribution is unrestricted and can be used for private purposes.
-
-
Chambers of commerce and other business leagues or organizations.
-
Civic leagues and associations.
-
Communist organizations.
-
Country clubs and other social clubs.
-
Foreign organizations other than:
-
A U.S. organization that transfers funds to a charitable foreign organization if the U.S. organization controls the use of the funds or if the foreign organization is only an administrative arm of the U.S. organization, or
-
Certain Canadian, Israeli, or Mexican charitable organizations. See Canadian charities, Mexican charities, and Israeli charities under Organizations That Qualify To Receive Deductible Contributions, earlier.
-
-
Homeowners' associations.
-
Labor unions. But you may be able to deduct union dues as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit, on Schedule A (Form 1040). See Publication 529, Miscellaneous Deductions.
-
Political organizations and candidates.
If you receive or expect to receive a financial or economic benefit as a result of making a contribution to a qualified organization, you cannot deduct the part of the contribution that represents the value of the benefit you receive. See Contributions From Which You Benefit under Contributions You Can Deduct, earlier. These contributions include:
-
Contributions for lobbying. This includes amounts that you earmark for use in, or in connection with, influencing specific legislation.
-
Contributions to a retirement home that are for room, board, maintenance, or admittance. Also, if the amount of your contribution depends on the type or size of apartment you will occupy, it is not a charitable contribution.
-
Costs of raffles, bingo, lottery, etc. You cannot deduct as a charitable contribution amounts you pay to buy raffle or lottery tickets or to play bingo or other games of chance. For information on how to report gambling winnings and losses, see Deductions Not Subject to the 2% Limit in Publication 529.
-
Dues to fraternal orders and similar groups. However, see Membership fees or dues under Contributions From Which You Benefit, earlier.
-
Tuition, or amounts you pay instead of tuition, even if you pay them for children to attend parochial schools or qualifying nonprofit day-care centers. You also cannot deduct any fixed amount you may be required to pay in addition to the tuition fee to enroll in a private school, even if it is designated as a “donation.”
-
Contributions connected with split-dollar insurance arrangements. You cannot deduct any part of a contribution to a charitable organization if, in connection with the contribution, the organization directly or indirectly pays, has paid, or is expected to pay any premium on any life insurance, annuity, or endowment contract for which you, any member of your family or any other person chosen by you (other than a qualified charitable organization) is a beneficiary.
Example. You donate money to a charitable organization. The charity uses the money to purchase a cash value life insurance policy. The beneficiaries under the insurance policy include members of your family. Even though the charity may eventually get some benefit out of the insurance policy, you cannot deduct any part of the donation.
A qualified charitable distribution (QCD) is a distribution made directly by the trustee of your individual retirement arrangement (IRA), other than a SEP or SIMPLE IRA, to certain qualified organizations. You must have been at least age 70½ when the distribution was made. Your total QCDs for the year cannot be more than $100,000. If all the requirements are met, a QCD is nontaxable, but you cannot claim a charitable contribution deduction for a QCD. See Publication 590, Individual Retirement Arrangements (IRAs), for more information about QCDs.
You cannot deduct personal, living, or family expenses, such as the following items.
-
The cost of meals you eat while you perform services for a qualified organization, unless it is necessary for you to be away from home overnight while performing the services.
-
Adoption expenses, including fees paid to an adoption agency and the costs of keeping a child in your home before adoption is final. However, you may be able to claim a tax credit for these expenses. Also, you may be able to exclude from your gross income amounts paid or reimbursed by your employer for your adoption expenses. See Form 8839, Qualified Adoption Expenses, and its instructions, for more information. You also may be able to claim an exemption for the child. See Exemptions for Dependents in Publication 501 for more information.
Fees that you pay to find the fair market value of donated property are not deductible as contributions. You can claim them, subject to the 2%-of-adjusted-gross-income limit, as a miscellaneous itemized deduction on Schedule A (Form 1040). See Deductions Subject to the 2% Limit in Publication 529 for more information.
You cannot deduct a contribution to a donor advised fund after February 13, 2007, if:
-
The qualified organization that sponsors the fund is a war veterans' organization, a fraternal society, or a nonprofit cemetery company, or
-
You do not have an acknowledgment from that sponsoring organization that it has exclusive legal control over the assets contributed.
There are also other circumstances in which you cannot deduct your contribution to a donor advised fund.
Generally, a donor advised fund is a fund or account in which a donor can, because of being a donor, advise the fund how to distribute or invest amounts held in the fund. For details, see Internal Revenue Code section 170(f)(18).
If you contribute property to a qualified organization, the amount of your charitable contribution is generally the fair market value of the property at the time of the contribution. However, if the property has increased in value, you may have to make some adjustments to the amount of your deduction. See Giving Property That Has Increased in Value, later.
For information about the records you must keep and the information you must furnish with your return if you donate property, see Records To Keep and How To Report, later.
Special rules apply if you contributed:
-
Clothing or household items,
-
A car, boat, or airplane,
-
Taxidermy property,
-
Property subject to a debt,
-
A partial interest in property,
-
A fractional interest in tangible personal property,
-
A qualified conservation contribution,
-
A future interest in tangible personal property,
-
Inventory from your business, or
-
A patent or other intellectual property.
These special rules are described next.
You cannot take a deduction for clothing or household items you donate unless the clothing or household items are in good used condition or better.
-
Furniture,
-
Furnishings,
-
Electronics,
-
Appliances,
-
Linens, and
-
Other similar items.
-
Food,
-
Paintings, antiques, and other objects of art,
-
Jewelry and gems, and
-
Collections.
The following rules apply to any donation of a qualified vehicle.
A qualified vehicle is:
-
A car or any motor vehicle manufactured mainly for use on public streets, roads, and highways,
-
A boat, or
-
An airplane.
-
The gross proceeds from the sale of the vehicle by the organization, or
-
The vehicle's fair market value on the date of the contribution. If the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to figure the deductible amount, as described under Giving Property That Has Increased in Value, later.
Example.
Anita donates a used car to a qualified organization. She bought it 3 years ago for $9,000. A used car guide shows the fair market value for this type of car is $6,000. However, Anita gets a Form 1098-C from the organization showing the car was sold for $2,900. Neither exception 1 nor exception 2 applies. If Anita itemizes her deductions, she can deduct $2,900 for her donation. She must attach Form 1098-C and Form 8283 to her return.
-
$500, or
-
The vehicle's fair market value on the date of the contribution. But if the vehicle's fair market value was more than your cost or other basis, you may have to reduce the fair market value to get the deductible amount, as described under Giving Property That Has Increased in Value later.
If you donate taxidermy property to a qualified organization, your deduction is limited to your basis in the property or its fair market value, whichever is less. This applies if you prepared, stuffed, or mounted the property or paid or incurred the cost of preparing, stuffing, or mounting the property.
Your basis for this purpose includes only the cost of preparing, stuffing, and mounting the property. Your basis does not include transportation or travel costs. It also does not include direct or indirect costs for hunting or killing an animal, such as equipment costs and the costs of preparing an animal carcass for taxidermy.
Taxidermy property means any work of art that: