What's the Difference Between Deducting Cash Donations and Property Donations to Charity?

You can deduct both cash and non-cash donations to qualifying charities, but the rules are different depending on what you give. For cash donations, you deduct the actual amount you gave, and you need a receipt or bank record for any donation of $250 or more. For property donations, such as clothing, furniture, stocks, or real estate, the deduction is generally the fair market value of the item on the date of the donation. Donating appreciated property — like stocks that have increased in value — can be especially tax-efficient because you avoid paying capital gains tax on the gain while still getting to deduct the full current value. Large non-cash donations over $500 require Form 8283, and donations of property worth more than $5,000 generally require a qualified appraisal.