To claim a charitable contribution deduction, the recipient organization must be registered as a tax-exempt organization as defined by Section 501(c)(3) of the Internal Revenue Code. You can search for an organization’s eligibility to receive tax-deductible charitable contributions using the IRS’s Tax Exempt Organization Search Tool. Note that the limit you are able to deduct applies to all donations you make throughout the year, no matter how many organizations you donate to.
What you donate is the next consideration. Cash donations are deductible, which we’ll cover in a later section. You can also donate time (by volunteering) or property; while you won’t be able to deduct the value of your service or time, you can deduct expenses related to volunteering.
Next, as a company, it’s worth noting that you can’t deduct charitable donations as business expenses. The way your business is structured also impacts the way you take deductions. For instance, if a partnership makes a charitable contribution, each partner takes a percentage share of the deduction on their tax return. If you’re unsure about the share of the deduction to take, consult with a CPA.
With those caveats out of the way, here’s how much you can deduct in charitable contributions.
How much can you deduct in charitable donations?
Not every organization will have the same donation percentage that you can deduct on your taxes. If you donate with your taxes in mind, verify the status of the organization through a third party and ask the organization directly what percentage of the donation will be deductible. And don’t forget to ask for a receipt!
Generally, you can deduct up to 60% of your adjusted gross income in charitable donations. However, depending on the type of organization and type of contribution, you may be limited to 20%, 30%, or 50%.
When donating to churches, hospitals, and government organizations, you can deduct donations up to 50% of your adjusted gross income. Other organizations will typically allow you to deduct donations up to 40% of your income. You cannot deduct donations to unqualified organizations, such as those that actively influence politics or voting.
If you donate above those percentages, you may be able to apply that deduction to the following tax year.
“Some business owners forget about the deduction limits,” Miller noted. “If a business donates more than the allowed percentage, the excess can’t be deducted that year. However, it can be carried forward.”
Carryover donations cannot be applied beyond the next five tax years, which is important to keep in mind if you decide to make any large donations.
Percentage limits are in place for all of the donations you make within the tax year. Regardless of how many organizations you donate to, the limitations will still apply.
The limit to how much you could claim temporarily changed in 2021 due to the CARES Act, passed in response to the pandemic. However, this benefit has since expired and does not apply to taxes filed in 2025.