We use cookies to improve your experience on our platform. By clicking “Accept all cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage and assist in our marketing efforts.
Cookies required for basic website functionality.
Cookies used to deliver content most relevant to you and your needs.
Cookies used to deliver content most relevant to you and your needs.
Cookies that help understand the performance of the website, how users interact with it and to identify bugs.
How is Zeffy free?
How is Zeffy free?
Zeffy relies entirely on optional contributions from donors. At the payment confirmation step - we ask donors to leave an optional contribution to Zeffy.
Not every generous gift counts at tax time, and we want to make that less confusing. Whether you dropped cash in a donation bucket, gave through Venmo, or bought cookies at a school fundraiser, we’re here to help you figure out what’s IRS-approved and eligible for tax breaks.
If you’re looking for a simple tax-deductible donations guide (no jargon– just simple checklists, charts, clear “yes or no” answers, a quick list of what documents to keep) you’re in the right place.
You must keep a donation receipt or acknowledgement letter
GoFundMe donation to help an individual
❌ No
Not tax-deductible unless it’s for a verified nonprofit and you have a donation receipt
Tithing or charitable contributions to a church
✅ Yes
Still deductible even without a formal receipt
Donation to a political campaign
❌ No
Political contributions are ever deductible
Buying items at a school fundraiser
❌ No
Not eligible for tax deduction because you received something in return (food, raffle entry, etc.)
Cryptocurrency donations to a nonprofit
✅ Yes (if it goes to a registered charity)
Donations must be tracked and the value at the time of the transaction should be recorded
Donation of used clothing or household items
✅ Yes
You will have to keep a donation receipt and deduct the fair market value (FMV)
Volunteering time or services
❌ No
Your time isn’t deductible, but any out-of-pocket expenses may be (gas, parking, supplies, etc.)
Donating through platforms like PayPal or Facebook
✅ Yes (if it goes to a registered charity)
You will need to save a confirmation email or receipt of the donation
Cash donations you drop in a jar
❌ No (usually)
These donations won’t be deductible unless you have a concrete record of the gift
IRS-approved deductible donation types
Not all charitable contributions are seen the same way by the IRS, so here’s a quick look at which donations qualify for tax deductions when you give to eligible nonprofits. Understanding what qualifies and what doesn’t can save you time during tax season and help you make your return as accurate as possible.
Cash donations
Cash donations are given to qualified charities, whether made through a check, credit card, Venmo, or cold hard cash, are deductible. You might see this when you drop $10 into a Red Cross bucket, donate online to a food bank, or set up a monthly recurring gift to your favorite animal rescue.
Why it matters:
It’s the most common and straightforward type of donation, but you still need proof to claim it.
What’s required:
Bank record, credit card statement, or receipt from the nonprofit
This includes gifts of publicly traded stocks, bonds, or mutual funds donated directly to a qualified nonprofit. You might see this when someone donates shares of Apple stock to a cancer research foundation instead of selling them first, or any donor advised fund (DAF).
Why it matters:
You can deduct the full market value and avoid capital gains tax.
What’s required:
Record of transfer (brokerage confirmation)
Date of your donation
The fair market value on the date of your transfer
Property and goods donations (also called "in-kind" donations) are tangible items like clothes, furniture, electronics, books, or vehicles donated to a nonprofit. You might see this when you drop off used clothes at Goodwill, donate a couch to a shelter, or gift old laptops to a school fundraiser.
This includes gifts of any digital currency (like Bitcoin, Ethereum, or Solana) that you transfer to a nonprofit that is equipped to receive crypto donations. For example, you might give $1,000 in Ethereum to a disaster relief fund or use a crypto donation platform like The Giving Block.
Why it matters:
Like donating stocks, you may avoid capital gains and deduct the full value.
While volunteer time isn’t tax deductible, you can deduct unreimbursed travel costs like airfare, hotel, and meals that happen while volunteering primarily for a nonprofit’s mission. An example might be your airport parking and flight when you travel to build homes with Habitat for Humanity, fly out for a disaster relief effort, or attend a nonprofit-led service trip abroad.
Why it matters:
Your generosity can be supported on multiple fronts including some tax benefits, as long as the trip isn’t a vacation.
What’s required:
Records of travel such as receipts and itineraries
Documentation of the nonprofit you volunteered for’s mission and your volunteer role
A log of daily activities that prove volunteer purpose on your dates of travel
Receipts for any lodging, meals, and transportation
Some things feel charitable, but the IRS sees them differently. Here’s why the following don’t qualify for a tax deduction:
Charitable activity
Why it’s not tax-deductible
Political contributions
Giving to a political campaign, candidate, or party isn’t tax-deductible, even if you believe in the cause. The IRS separates civic engagement from charitable giving.
Raffle tickets and prizes
Buying a raffle ticket, even for a school or nonprofit, doesn’t count. Since you’re entering to win something, it’s seen as a purchase and not a donation.
Fundraiser dinners or events
If you buy a ticket and get a meal, concert, or other benefit in return, only the portion above the fair value may be deductible. The IRS treats it like a transaction (more here).
Unpaid pledges
You can only deduct what you’ve actually paid in donations or pledges within the tax year. For example, making a promise today to donate in one year will not be eligible for tax deduction until the money leaves your hands.
Checks dates for next year
If your donation check is dated January 1st, it counts for that tax year even if you wrote it in December prior. The IRS goes by when the funds are actually processed vs. when you fill out the information on your check or promissory note.
How to claim a tax deduction for donations (4 simple steps)
Claiming your donation on your taxes is easier than you think. Here’s what to do:
1. Make sure the organization you give to is qualified
It may not always be clear which nonprofits are registered with the IRS. You can use the IRS Tax-Exempt Search Tool to confirm if the organization you’ve donated to is a 501(c)(3) or other eligible nonprofit.
Some examples of qualified organizations include:
Charities
Foundations
Nonprofit schools
Veterans and cultural groups
Public parks
Churches and religious organizations
While 501(c) (3) organizations are more well-known, a qualified charity could also be a 501(c)(6), 501(c)(4) or other type of nonprofit.
2. Keep your receipts
Unfortunately, tax deductions are only possible with proof so you’ll want to keep good records of every donation as the year goes on. Luckily, some nonprofits are making this easier by sending an automatic tax receipts for every single donation or transaction to your email.
You may have to store these digital or paper receipts in a folder that’s easily accessible come tax season, especially for anything over $250.
When filing your tax return, use Schedule A (Form 1040) to itemize your deductions for charitable behavior. This is where you can note each donation or charitable activity from the year, along with the receipts required.
You may also need to use Form 8283 for noncash charitable contributions (in-kind donations).
Pro tip: This may only be worth it if your total deductions exceed the standard deduction (vs. itemized deductions). Asking for legal or tax advice can guide you to the best way to claim charitable donations.
4. Save everything
It’s tempting to start over with your filing system or record keeping after your tax return is accepted, but it’s smart to keep records for at least 3 years in case of an audit. While this is rare, it doesn’t hurt to keep everything together for each charitable activity you partake in.
What to keep track of:
Receipts
Bank statements
Acknowledgment letters
Make Giving (and Tax Time) Effortless
When you donate through a fundraising platform like Zeffy, you'll get an IRS-compliant tax receipt automatically—no tracking, no stress. Plus, unlike other platforms, Zeffy is 100% free for nonprofits—which means more of your gift goes directly to the cause you care about.
Common questions from donors about Tax-deductible donations
The tax season typically begins in January and ends in April. Any tax-deductible donations you make in a given tax year are filed the following year during tax season.
For example, you may donate on January 1st, 2025, and have a receipt ready for your 2024 tax season, but you'll need to save it to file the following January. On the other hand, a December 31st donation will be eligible for deductions when you file in the new year.
While dates shift each year, here's an example of what's ahead for the 2024 filing season:
January 29: The start of the tax return filing season for individuals
October 15: Due date for any taxpayers granted an extension
Individuals can claim up to 60% of their adjusted gross income (AGI) for charitable tax deductions. The amount may be as low as 20% and fluctuate based on certain limitations.
Some additional details about specific charitable contribution deduction amounts:
Any benefit you receive in return for a contribution, such as a merchandise purchase, tickets, goods, or services, must be deducted only for the amount that exceeds their fair market value.
You can only claim items purchased at a charity auction in the total amount paid that exceeds their full fair market value.
Yes, you’ll need a record for every gift regardless of how small for the best chance at seeing your maximum deduction at tax season. Beyond that, don’t forget that for donations over $250, the IRS requires a written acknowledgment from the nonprofit, which can be an email or letter.
Venmo and other payment apps you use to donate through count for tax-deductible contributions as long as your donation went to a verified nonprofit account. Just save the transaction receipt or screenshot it, and confirm the org is a registered 501(c)(3) using the IRS search tool.
Many charitable donations to a qualified tax-exempt organization are tax-deductible. During the filing season, taxpayers can see deductions from their last year of income tax owed and end up owing less or even receiving a refund.
Deducting the value of charitable contributions from taxable income will help you experience less financial burden on your tax bill. Some donations aren’t tax-deductible, which we’ll cover below, along with details on how to claim these deductions on your tax return.
