Know when charitable gifts qualify for a tax deduction, how crowdfunding contributions are treated, and what warning signs may indicate a scam.
Charitable giving can support causes that matter to you while also playing an important role in your broader tax, estate, and wealth-planning strategies. It is important to consider whether tax deductions are permitted for planned charitable gifts, as not every contribution is deductible. The following information can help you determine whether a contribution qualifies for a deduction and recognize potential scams.
Is your contribution tax-deductible?
A donation is generally deductible only when it is made to an eligible organization. Qualifying recipients commonly include:
- Public charities recognized under Section 501(c)(3)
- Churches and other religious organizations
- Educational, scientific, and certain governmental organizations
- Certain private foundations, veterans’ organizations, volunteer fire companies, and other qualifying entities
An organization’s tax-exempt status does not automatically mean contributions to it are deductible. Before donating to a public charity, use the IRS Tax Exempt Organization Search to confirm the organization’s eligibility and deductibility status.
Remember, any benefits received from the charity related to your contribution reduce the deductible amount. It is worth maintaining a yearly ledger of charitable contributions that documents the name of the qualifying organization, the amount given, the fair market value of any benefits received, along with a folder of supporting receipts from the organizations for any cash contributions of $250 or more.
What about GoFundMe and other online campaigns?
A contribution to GoFundMe or other crowdfunding fundraising campaigns established for a specific individual or family is generally not a tax-deductible charitable contribution, even when the underlying need is compelling. The fundraising platform does not determine whether a gift is deductible. If the recipient is an individual, there are no related charitable income tax deductions and gift tax rules apply.
The structure and recipient of the campaign matter
Example 1: A GoFundMe campaign collecting money directly for a family affected by a house fire is a generous personal gift, but it is generally not tax-deductible because the funds benefit specific individuals.
Example 2: If a verified 501(c)(3) organization conducts an online campaign to provide disaster relief support, contributions likely qualify for a tax deduction.
Donors should review the campaign carefully to determine who receives and controls the funds. A receipt generated by an online platform does not, by itself, establish deductibility.
Are political contributions deductible?
Contributions to political candidates, campaigns, political action committees, or political parties are not tax-deductible.
Qualifying Charitable Organizations recognized under Section 501(c)(3) are generally prohibited from participating or intervening in campaigns for or against candidates for public office.
Are services that are provided to a charity deductible?
Regardless of the fair market value of the services provided to a charity, there are no income tax deductions for the fair market value of personal time spent helping further the charity’s objectives. However, keep receipts for any unreimbursed out-of-pocket expenses as these may be deductible as in-kind gifts to the qualifying organization. Keep in mind that there may be additional disclosure or appraisal requirements for these expenses in certain circumstances.
Does it make sense to donate assets other than cash to a qualifying organization?
Gifting highly appreciated stocks or other appreciated assets to a charity usually offers significantly better income tax results when compared directly to cash contributions. If you’re considering gifting assets other than cash, please reach out to your tax adviser before pursuing this opportunity as there may be limitations on the deduction or specific disclosures/appraisals needed to support the income tax filing.
Can charitable contributions be deducted even if I don’t claim itemized deductions?
Beginning in 2026, taxpayers who claim the standard deduction may also deduct up to $1,000 in cash charitable contributions (or $2,000 for jointly filed returns).
Warning signs of a charitable contribution scam
The IRS included charitable contribution scams in its annual list of tax scams to watch out for (see this article for the full list – 2026 “Dirty Dozen” List). Fraudulent solicitations often increase after natural disasters and other widely publicized events. Warning signs may include:
- Pressure to donate immediately
- An organization name that closely resembles a well-known charity
- Requests for payment by cryptocurrency, gift card, wire transfer, or cash
- Unsolicited requests for Social Security, banking, or credit card information
- Promises that a donation will eliminate or substantially reduce your tax liability
- Appraisals that appear unusually high or are tied to a promoted tax strategy
Always research the organization independently if you are considering a contribution to determine deductibility rather than relying on links or contact information included in an unsolicited message.
Plan and verify before you give
Thoughtful planning and careful verification can help protect both your charitable impact and your financial information while supporting your tax and wealth-planning objectives. Before making a substantial cash or non-cash contribution, confirm the organization’s legitimacy and tax-exempt status. Remain alert to potential scams and consult your Keiter Opportunity Advisor regarding deduction limitations, valuation, and documentation requirements.
About the Authors
Mark Hodges CPA, CFP®, Tax Senior Manager
To assist his clients in meeting their goals and objectives, Mark takes a team approach – working collaboratively with his clients, their other advisors, and legal counsel. He also specializes in identifying and helping to implement trust and estate planning opportunities for his clients. Mark is a member of Keiter’s Private Client Services team.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
