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Charitable Contributions: Publication 526
Charitable Contributions: Publication 526
Charitable Contributions: Publication 526
Charitable
What's New .................. 1
Department
of the Reminders . . . . . . . . . . . . . . . . . . . 1
Contributions
Treasury
Internal Introduction . . . . . . . . . . . . . . . . . . 2
Revenue
Service Organizations That Qualify To
Receive Deductible
Contributions . . . . . . . . . . . . . . 2
For use in preparing Contributions You Can Deduct ...... 3
Contributions of Property . . . . . . . . . . 8
When To Deduct . . . . . . . . . . . . . . 14
Limits on Deductions . . . . . . . . . . . 14
Substantiation Requirements . . . . . . 20
How To Report . . . . . . . . . . . . . . . 22
Index . . . . . . . . . . . . . . . . . . . . . 26
Future Developments
For the latest information about developments
related to Pub. 526 (such as legislation enacted
after we release it), go to IRS.gov/Pub526.
What's New
Cash contributions if you don’t itemize de-
ductions. If you don’t itemize your deductions
on Schedule A (Form 1040), you may qualify to
take a deduction for contributions of up to $300.
See Cash contributions for individuals who do
not itemize deductions, later.
Temporary suspension of limits for cash
contributions. Certain cash contributions you
made are not subject to the 60% limit for cash
contributions. See Qualified cash contributions
for 2020, later.
Temporary increase in limits on contribu-
tions of food inventory. The limit on contribu-
tions of food inventory has increased from 15%
to 25% for business taxpayers. See Food In-
ventory, later.
Reminders
Disaster relief. You can deduct contributions
for flood relief, hurricane relief, or other disaster
relief to a qualified organization (defined under
Organizations That Qualify To Receive Deducti-
ble Contributions). However, you can't deduct
contributions earmarked for relief of a particular
Get forms and other information faster and easier at: individual or family. See Pub. 976, Disaster Re-
• IRS.gov (English) • IRS.gov/Korean (한국어) lief, for more information.
• IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский) Pub. 3833, Disaster Relief, Providing Assis-
• IRS.gov/Chinese (中文) • IRS.gov/Vietnamese (Tiếng Việt) tance Through Charitable Organizations, has
more information about disaster relief, including
Property
plies to cash contributions made on or after 1. You cannot itemize deductions on Sched-
May 31, 2019, and before June 1, 2021, for the ule A (Form 1040); and 976 Disaster Relief
976
relief of the families of dead or wounded victims 2. The charitable contribution must be:
of the mass shooting in Virginia Beach, Virginia, Forms (and Instructions)
on May 31, 2019. See Contributions You Can a. Paid in cash or by check.
Schedule A (Form 1040) Itemized
Deduct, later.
Schedule A (Form 1040)
property to or for the use of a qualified organiza- tions) (other than certain private foun- See How To Get Tax Help near the end of this
tion and you receive or expect to receive a state dations described in section 509(a)(3) publication for information about getting these
or local tax credit or a state or local tax deduc- or for the establishment of a new, or publications and forms.
tion in return, your charitable contribution de- maintenance of an existing, donor ad-
duction may be reduced. See State or local tax vised fund as described in section
credit, later. 4966(d)(2)).
Organizations That
Photographs of missing children. The IRS is
a proud partner with the National Center for
Contributions of noncash property and contribu-
tions carried forward from prior years don’t
Qualify To Receive
Missing & Exploited Children® (NCMEC). Pho-
tographs of missing children selected by the
qualify for this deduction. Deductible
For records you must keep, see Substantia-
Center may appear in this publication on pages
tion Requirements, later. Contributions
that would otherwise be blank. You can help
bring these children home by looking at the Note. You cannot claim the deduction on You can deduct your contributions only if you
photographs and calling 800-THE-LOST Form 1040 or 1040-SR, line 10b, and file make them to a qualified organization.
(800-843-5678) or visiting Schedule A (Form 1040). You may benefit from
www.missingkids.com if you recognize a child. itemizing deductions if your itemized deduc- How to check whether an organization can
tions are greater than the standard deduction. If receive deductible charitable contributions.
Introduction you have a choice, you should generally use You can ask any organization whether it is a
qualified organization, and most will be able to
the method that gives you the lower tax.
This publication explains how individuals claim tell you. You can also check by going to
a deduction for charitable contributions. It dis- Comments and suggestions. We welcome IRS.gov/TEOS. This online tool will enable you
cusses the types of organizations to which you your comments about this publication and your to search for qualified organizations.
can make deductible charitable contributions suggestions for future editions.
and the types of contributions you can deduct. It
also discusses how much you can deduct, what
You can send us comments through Types of Qualified
IRS.gov/FormComments. Or, you can write to:
records you must keep, and how to report chari- Internal Revenue Service, Tax Forms and Pub- Organizations
table contributions. lications, 1111 Constitution Ave. NW, IR-6526,
A charitable contribution is a donation or gift Washington, DC 20224. Generally, only the following types of organiza-
to, or for the use of, a qualified organization. It is tions can be qualified organizations.
Although we can’t respond individually to
voluntary and is made without getting, or ex- each comment received, we do appreciate your 1. A community chest, corporation, trust,
pecting to get, anything of equal value. feedback and will consider your comments and fund, or foundation organized or created in
suggestions as we revise our tax forms, instruc- or under the laws of the United States, any
Qualified organizations. Qualified organiza- tions, and publications. Do not send tax ques- state, the District of Columbia, or any pos-
tions include nonprofit groups that are religious, tions, tax returns, or payments to the above ad- session of the United States (including Pu-
charitable, educational, scientific, or literary in dress. erto Rico). It must, however, be organized
purpose, or that work to prevent cruelty to chil-
and operated only for charitable, religious,
dren or animals. You will find descriptions of Getting answers to you tax questions. If scientific, literary, or educational purpo-
these organizations under Organizations That you have a tax question not answered by this ses, or for the prevention of cruelty to chil-
Qualify To Receive Deductible Contributions. publication or the How To Get Tax Help section dren or animals. Certain organizations that
at the end of this publication, go to the IRS In- foster national or international amateur
Schedule A (Form 1040) required. Gener- teractive Tax Assistant page at IRS.gov/ sports competition also qualify.
ally, to deduct a charitable contribution, you Help/ITA where you can find topics by using the
must itemize deductions on Schedule A (Form search feature or viewing the categories listed. 2. War veterans' organizations, including
1040). The amount of your deduction may be posts, auxiliaries, trusts, or foundations,
that perform substantial government func- Expenses paid for a student living with you, sponsored by a Cost of raffle, bingo, or lottery tickets
tions. (Your contribution to this type of or- qualified organization
ganization is deductible only if it is to be Dues, fees, or bills paid to country clubs, lodges, fraternal
used solely for public purposes.) Out-of-pocket expenses when you serve a qualified orders, or similar groups
Example 1. You contribute cash to organization as a volunteer
your city's police department to be used Tuition
as a reward for information about a crime.
Value of your time or services
The city police department is a qualified
organization, and your contribution is for a Value of blood given to a blood bank
public purpose. You can deduct your con-
tribution.
Example 2. You make a voluntary Canadian charities. You may be able to de-
contribution to the social security trust
fund, not earmarked for a specific ac-
duct contributions to certain Canadian charita-
ble organizations covered under an income tax Contributions
count. Because the trust fund is part of the
U.S. Government, you contributed to a
treaty with Canada. To deduct your contribution
to a Canadian charity, you must generally have
You Can Deduct
qualified organization. You can deduct income from sources in Canada. See Pub. 597,
your contribution. Generally, you can deduct contributions of
Information on the United States–Canada In-
money or property you make to, or for the use
come Tax Treaty, for information on how to fig-
Examples. The following list gives some ex- of, a qualified organization. A contribution is “for
ure your deduction.
amples of qualified organizations. the use of” a qualified organization when it is
• Churches, a convention or association of Mexican charities. Under the U.S.–Mexico in- held in a legally enforceable trust for the quali-
churches, temples, synagogues, mosques, fied organization or in a similar legal arrange-
come tax treaty, a contribution to a Mexican
and other religious organizations. ment.
charitable organization may be deductible, but
• Most nonprofit charitable organizations only if and to the extent the contribution would
such as the American Red Cross and the The contributions must be made to a quali-
have been treated as a charitable contribution
United Way. fied organization and not set aside for use by a
to a public charity created or organized under
• Most nonprofit educational organizations, U.S. law. To deduct your contribution to a Mexi-
specific person.
including the Boy Scouts of America, Girl can charity, you must have income from sour-
Scouts of America, colleges, and muse- Virginia Beach Strong Act. If you made a
ces in Mexico. The limits described in Limits on
ums. This also includes nonprofit daycare contribution for the relief of the families of the
Deductions, later, apply and are figured using
centers that provide childcare to the gen- dead or wounded victims of the mass shooting
your income from Mexican sources.
eral public if substantially all the childcare in Virginia Beach, Virginia, on May 31, 2019,
is provided to enable parents and guardi- you may be able to deduct that contribution. In
Israeli charities. Under the U.S.–Israel in-
ans to be gainfully employed. However, if order to deduct the contribution, it must have
come tax treaty, a contribution to an Israeli
your contribution is a substitute for tuition been made:
charitable organization is deductible if and to
or other enrollment fee, it isn't deductible the extent the contribution would have been
• In cash or check;
as a charitable contribution, as explained treated as a charitable contribution if the organi-
• Between May 31, 2019, and June 1, 2021;
later under Contributions You Can't De- and
zation had been created or organized under
duct. U.S. law. To deduct your contribution to an Isra-
• For the relief of the families of dead or
• Nonprofit hospitals and medical research wounded victims of the mass shooting in
eli charity, you must have income from sources
organizations. Virginia Beach, Virginia, on May 31, 2019.
in Israel. The limits described in Limits on De-
• Utility company emergency energy pro- ductions, later, apply. The deduction is also If you made your contribution by
grams, if the utility company is an agent for limited to 25% of your adjusted gross income TIP phone, keep your phone bill showing
a charitable organization that assists indi- from Israeli sources. the name of who you made the dona-
viduals with emergency energy needs. tion to, the date you made the contribution, and
• Nonprofit volunteer fire companies. the amount of the contribution. See Substantia-
• Nonprofit organizations that develop and tion Requirements, later.
maintain public parks and recreation facili-
ties.
• Civil defense organizations. If you give property to a qualified organiza-
tion, you can generally deduct the fair market
value (FMV) of the property at the time of the
Question Answer
I volunteer 6 hours a week in the office of a qualified organization. The receptionist is paid No, you can't deduct the value of your time or services.
$10 an hour for the same work. Can I deduct $60 a week for my time?
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 volunteer. If you don't
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 the uniforms I Yes, you can deduct the cost of buying and cleaning your uniforms if
must wear? the hospital is a qualified organization, the uniforms aren't suitable for
everyday use, and you must wear them when volunteering.
I pay a babysitter to watch my children while I volunteer for a qualified organization. Can I No, you can't deduct payments for childcare expenses as a
deduct these costs? charitable contribution, even if you would be unable to volunteer without childcare. (If you
have childcare expenses so you can work for pay, see Pub. 503, Child and Dependent
Care Expenses.)
The organization determines whether the value of the organization to provide educational b. He or she filed a joint return; or
of an item or benefit is substantial by using Rev- opportunities for the student,
c. You, or your spouse if filing jointly,
enue Procedures 90-12 and 92-49 and the in-
2. Isn't your relative (defined later) or de- could be claimed as a dependent on
flation adjustment in Revenue Procedure
pendent (also defined later), and someone else's 2020 return.
2019-44.
3. Is a full-time student in the twelfth or any Foreign students brought to this coun-
Written statement. A qualified organization lower grade at a school in the United TIP try under a qualified international edu-
must give you a written statement if you make a States. cation exchange program and placed
payment of more than $75 that is partly a contri- in American homes for a temporary period gen-
bution and partly for goods or services. The You can deduct up to $50 a month for
erally aren't U.S. residents and can't be claimed
statement must say you can deduct only the TIP each full calendar month the student as dependents.
amount of your payment that is more than the lives with you. Any month when condi-
value of the goods or services you received. It tions (1) through (3) are met for 15 or more days
counts as a full month. Qualifying expenses. You may be able to de-
must also give you a good faith estimate of the
duct the cost of books, tuition, food, clothing,
value of those goods or services.
transportation, medical and dental care, enter-
The organization can give you the statement Qualified organization. For these purposes, a
tainment, and other amounts you actually
either when it solicits or when it receives the qualified organization can be any of the organi-
spend for the well-being of the student.
payment from you. zations described earlier under Types of Quali-
fied Organizations, except those in (4) and (5).
Exception. An organization won't have to Expenses that don't qualify. You can't de-
For example, if you are providing a home for a
give you this statement if one of the following is duct depreciation on your home, the fair market
student as part of a state or local government
true. value of lodging, and similar items not consid-
program, you can't deduct your expenses as
ered amounts actually spent by you. Nor can
1. The organization is: charitable contributions. But see Foster parents
you deduct general household expenses, such
under Out-of-Pocket Expenses in Giving Serv-
a. A governmental organization descri- as taxes, insurance, and repairs.
ices, later, if you provide the home as a foster
bed in (5) under Types of Qualified parent. Reimbursed expenses. In most cases,
Organizations, earlier, or you can't claim a charitable contribution deduc-
b. An organization formed only for reli- Relative. The term “relative” means any of the tion if you are compensated or reimbursed for
gious purposes, and the only benefit following persons. any part of the costs of having a student live
you receive is an intangible religious • Your child, stepchild, foster child, or a de- with you. However, you may be able to claim a
benefit (such as admission to a reli- scendant of any of them (for example, your charitable contribution deduction for the unreim-
gious ceremony) that generally isn't grandchild). A legally adopted child is con- bursed portion of your expenses if you are reim-
sold in commercial transactions out- sidered your child. bursed only for an extraordinary or one-time
side the donative context. • Your brother, sister, half brother, half sis- item, such as a hospital bill or vacation trip, you
ter, stepbrother, or stepsister. paid in advance at the request of the student's
2. You receive only items whose value isn't • Your father, mother, grandparent, or other parents or the sponsoring organization.
substantial, as described under Token direct ancestor.
items, earlier. • Your stepfather or stepmother. Mutual exchange program. You can't de-
• A son or daughter of your brother or sister. duct the costs of a foreign student living in your
3. You receive only membership benefits that
• A brother or sister of your father or mother. home under a mutual exchange program
can be disregarded, as described under
• Your son-in-law, daughter-in-law, fa- through which your child will live with a family in
Membership fees or dues, earlier.
ther-in-law, mother-in-law, brother-in-law, a foreign country.
or sister-in-law.
Expenses Paid for Reporting expenses. For a list of what you
Student Living With You Dependent. For this purpose, the term “de- must file with your return if you deduct expen-
pendent” means: ses for a student living with you, see Reporting
expenses for student living with you under How
You may be able to deduct some expenses of 1. A person you can claim as a dependent, To Report, later.
having a student live with you. You can deduct or
qualifying expenses for a foreign or American
student who: 2. A person you could have claimed as a de- Out-of-Pocket Expenses
pendent except that:
1. Lives in your home under a written agree- in Giving Services
ment between you and a qualified organi- a. He or she received gross income of
zation (defined later) as part of a program $4,300 or more;
Qualified contributions for relief efforts for Example 2. You donated clothing to your
The limit that applies to a contribution depends church with a fair market value of $200. The
2018 and 2019 disasters. If you make a quali-
on the type of property you give and which cate- limit based on 60% of AGI doesn’t apply be-
fied contribution for relief efforts in a qualified
gory of qualified organization you give it to. The cause the contribution is not cash. Instead, a
disaster area, your deduction for the qualified
amount of a contribution you can deduct is gen- limit based on 50% of AGI discussed later will
contribution is limited to 100% of your adjusted
erally limited to a percentage of your adjusted apply to the contribution to the church because
gross income minus your deduction for all other
gross income (AGI), but may be further reduced it is an organization described earlier under
contributions. For purposes of this section, a
if you make contributions that are subject to First category of qualified organizations (50%
qualified disaster is a major disaster that was
more than one of the limits discussed in this limit organizations).
declared before February 19, 2020, by the
section.
President under section 401 of the Stafford Act “For the use of” contribution exception.
Your total deduction of charitable contribu- and that occurred in 2018 and before Decem- A 30% limit applies to cash contributions that
tions can’t exceed your AGI. If your contribu- ber 21, 2019. However, a qualified disaster are “for the use of” the qualified organizations
tions are subject to more than one of the limits, doesn't include California wildfires in January instead of “to” the qualified organization. A con-
you include all or part of each contribution in a 2018 (which received special relief). tribution is “for the use of” a qualified organiza-
certain order, carrying over any excess to a A qualified contribution must meet the fol- tion when it is held in a legally enforceable trust
subsequent year (if allowed). See How To Fig- lowing criteria. for the qualified organization or in a similar legal
ure Your Deduction When Limits Apply and • It is a charitable contribution paid in cash arrangement. See Contributions to the second
Carryovers, later, for more information about or- or by check before February 19, 2020. category of qualified organiztions or “for the use
dering and carryovers. • It is paid to an organization described ear- of” any qualified organization, later, under Lim-
lier under First category of qualified organi- its based on 30% of adjusted gross income, for
zations (50% limit organizations)(other more information.
Limits based on 100% of adjusted than certain private foundations described
gross income in section 509(a)(3)).
Limits based on 50% of adjusted
• It is payable for relief efforts in a qualified
There are three 100% limits that may apply to disaster area described above.
gross income (AGI)
your contributions.
• The taxpayer obtains contemporaneous There are two 50% limits that may apply to your
written acknowledgement (within the
Qualified conservation contributions of contributions.
farmers and ranchers. If you are a qualified
farmer or rancher, your deduction for a qualified
Qualified cash contributions for 2020 and qualified contributions for certain disaster relief efforts
(If line 3 is zero, enter -0- on lines 52 through 56.)
52. Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
53. Add lines 13, 17, 24, 30, 40, 45, and 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Carryovers cash contribution in full because your total cash your 30% limit contributions for this year to next
contributions of $10,500 ($9,500 + $1,000) is year.
You can carry over any contributions you can't less than $12,000 (60% of $20,000).
deduct in the current year because they exceed Carryover of capital gain property. If you
the limits based on your adjusted gross income Example 2. This year, your AGI is $24,000. carry over contributions of capital gain property
(AGI). Except for qualified conservation contri- You make cash contributions of $6,000 that you subject to the special 30% limit and you choose
butions, you may be able to deduct the excess elected not to treat as qualified cash contribu- in the next year to use the 50% limit and take
in each of the next 5 years until it is used up, but tions for 2020, so the 60% limit applies and appreciation into account, you must refigure the
not beyond that time. $3,000 to which the 30% limit applies. You have carryover. Reduce the fair market value of the
a contribution carryover from last year of $5,000 property by the appreciation and reduce that re-
A carryover of a qualified conservation con- for capital gain property contributed to a 50% sult by the amount actually deducted in the pre-
tribution can be carried forward for 15 years. limit organization and subject to the special vious year.
30% limit for contributions of capital gain prop-
erty. Example. Last year, your AGI was $50,000
Contributions you carry over are subject to
Your cash contribution of $6,000 is fully de- and you contributed capital gain property val-
the same percentage limits in the year to which
ductible because it is less than $14,400 (which ued at $27,000 to a 50% limit organization and
they are carried. For example, contributions
is 60% of your AGI). didn't choose to use the 50% limit. Your basis in
subject to the 20% limit in the year in which they
The deduction for your 30% limit contribu- the property was $20,000. Your deduction was
are made are 20% limit contributions in the year
tions of $3,000 is limited to $1,000. This is the limited to $15,000 (30% of $50,000), and you
to which they are carried. But see Carryover of
lesser of: carried over $12,000. This year, your AGI is
capital gain property, later.
$60,000 and you contribute capital gain prop-
1. $7,200 (30% of $24,000), or
erty valued at $25,000 to a 50% limit organiza-
For each category of contributions, you de- 2. $1,000 ($12,000 minus $11,000). tion. Your basis in the property is $24,000 and
duct carryover contributions only after deduct- you choose to use the 50% limit. You must re-
ing all allowable contributions in that category (The $12,000 amount is 50% of $24,000, your figure your carryover as if you had taken appre-
for the current year. If you have carryovers from AGI. The $11,000 amount is the sum of your ciation into account last year as well as this
2 or more prior years, use the carryover from current and carryover contributions to 50% limit year. Because the amount of your contribution
the earlier year first. organizations, $6,000 + $5,000.) last year would have been $20,000 (the proper-
The deduction for your $5,000 carryover is ty's basis) instead of the $15,000 you actually
Note. A carryover of a contribution to a 50% subject to the special 30% limit for contributions deducted, your refigured carryover is $5,000
limit organization must be used before contribu- of capital gain property. This means it is limited ($20,000 − $15,000). Your total deduction this
tions in the current year to organizations other to the smaller of: year is $29,000 (your $24,000 current contribu-
than 50% limit organizations. See Example 2. tion plus your $5,000 carryover).
1. $7,200 (your 30% limit), or
Example 1. Last year, you made cash con- 2. $5,000 ($12,000, your 50% limit, minus Additional rules for carryovers. Special
tributions of $11,000 to 50% limit organizations. your allowable cash contributions to which rules exist for computing carryovers if you:
Because of the limit based on 60% of AGI, you the 60% limit applies ($6,000) and minus • Are married in some years but not others,
deducted only $10,000 and carried over $1,000 your allowable contribution to which the • Have different spouses in different years,
to this year. This year, your AGI is $20,000 and 30% limit applies ($1,000)). • Change from a separate return to a joint re-
you made cash contributions that you elected turn in a later year,
not to treat as qualified cash contributions for Because your $5,000 carryover contribution
does not exceed the smaller limit of $5,000, you • Change from a joint return to a separate re-
2020 of $9,500 to 50% limit organizations. The turn in a later year,
limit based on 60% of AGI applies to your cur- can deduct it in full.
Your deduction is $12,000 ($6,000 + $1,000 • Have a net operating loss,
rent year cash contribution of $9,500 and carry- • Claim the standard deduction in a carry-
over contribution of $1,000. You can deduct this + $5,000). You carry over the $2,000 balance of
over year, or
year’s cash contribution and your carryover
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