Can I Deduct Cash Donations to Charity?

Giving money to a charity is a generous act, and the IRS rewards it with a potential tax deduction. To deduct a cash donation, the recipient must be a qualified tax-exempt organization, which you can verify using the IRS Tax Exempt Organization Search tool. You need a receipt or bank record for any donation, and for gifts of $250 or more, you must have a written acknowledgment from the organization. The deduction only benefits you if you itemize, so your total itemized deductions need to exceed your standard deduction for the year. If you tend to give small amounts spread across many organizations, you may find that the standard deduction is still higher than your itemized total.