With rising costs and increasing need, many nonprofits are relying more than ever on community support.
Fortunately, there are ways to contribute meaningfully and make smart financial choices. Whether you’re able to give a little or a lot, planning your charitable giving by December 31, 2025, can benefit both the causes you care about and your financial peace of mind.
Here are some important pointers to keep in mind:
Cash Isn’t the Only Way to Give.
Donating goods (food, clothing, furniture, electronics) – goods are deductible at fair market value, but packaged food and canned goods are deductible at cost.
Donating appreciated assets like stock may allow you to avoid capital gains taxes while still claiming the deduction
Volunteer expenses (mileage, supplies) may be deductible if directly related to charitable work
Itemizing vs. the Standard Deduction.
Under the 2024 tax law, you were only allowed to deduct charitable contributions if you itemized, but starting in the 2025 tax year – under the “One Big Beautiful Bill Act” taxpayers can now claim above-the-line -deductions for cash donations of up to $1,000 for single filers and $2,000 for married filing jointly filers even if they do not itemize their deductions.
Further, if your yearly donations exceed the above-the-line- deductions but will not push you past the standard deduction threshold, consider bunching your donations and donating two years of donations every other year to exceed the threshold.
Timing Matters.
Contributions must be made by December 31 to count for the 2025 tax year
If mailing a check, make sure it’s postmarked by year-end
For online giving, the transaction must be completed, not just initiated, by Dec. 31
Protect your contribution deductions from an IRS audit.
Only contributions made to an IRS-qualified charitable organization under section 501(c) (3) are tax deductible.
This list is available at https://www.irs.gov/charities-non-profits/tax-exempt-organization-search.
Keep proper documentation: donation receipts, mileage logs, and item values
Make sure you receive a “From 1098-C” if donating a car to a charity.
Make sure you obtain a qualified appraisal when donating non-cash goods valued over $5,000.
If you don’t currently work with tax pro, this is a great time to start that relationship before things get busy in the new year. David A. Santini, CPA LLC is always happy to answer questions and help you explore tax deductions that make the most sense for your tax situation.