Giving Tuesday: Giving Back and Staying Tax Smart

Every year after Thanksgiving, millions of Americans come together for Giving Tuesday, a global day dedicated to giving back. Whether you’re pitching in for a local charity, supporting disaster relief efforts, volunteering your time, or contributing to a cause close to your heart, your gift truly matters. And as the holiday season warms our hearts and reminds us of the joy of giving, it also reminds us to give wisely, watch out for potential scammers, and stay smart about the potential tax benefits of charitable giving.

Why Giving Tuesday Matters

Giving Tuesday is held the Tuesday after Thanksgiving. It was created to inspire generosity worldwide. It’s a gentle reminder that even small acts of kindness – financial or otherwise – can have a big impact on communities. For many nonprofits, the donations they receive on this day help sustain their missions throughout the year. This year, Giving Tuesday is celebrated on Tuesday, December 2.

Tax Benefits of Charitable Giving

It may be better to give than to receive, but who says you can’t do both? Certain donations made to qualified organizations may be tax deductible if you itemize when filing your taxes.

Here are a few friendly reminders:

• Only qualified organizations count. Visit the IRS’s Tax Exempt Organization Search tool on IRS.gov and enter the organization’s name or Employer Identification Number to verify whether a charity is eligible to receive tax-deductible donations. You can get examples of qualified charitable organizations in the Instructions for Schedule A (Form 1040).
• Keep your records. You will want to get a receipt that includes the amount donated, the date, and the name of the recipient.
• Gifts of $250 or more. For donations of $250 or more, you must have a contemporaneous written acknowledgement from the receiving organization before you file your tax return. The acknowledgement must state the amount of the gift or a description and good faith estimate of the value of any property donated and include a statement that the organization did not provide any goods or services in exchange for the gift, or if it did, it must provide a good-faith estimate of the value of those goods and services.
• Special rules for noncash donations. If you donate property or goods, you’ll need to determine the fair market value of those items and get a written acknowledgment if you’re claiming a deduction for $250 or more.
• Consider the timing. Donations are deductible in the year they’re made, so only contributions made by December 31, 2025, can count toward your 2025 tax return.

Tips from the National Taxpayer Advocate

As the National Taxpayer Advocate, I want to help taxpayers make the most of their generosity while staying protected and informed.

A few tips to donate smartly during the holidays and beyond:

• Be cautious of scams. Sadly, charitable fraud spikes during the holidays. Make sure to donate through verified channels, avoid sharing personal financial information with unfamiliar organizations, and avoid transferring money via unusual payment methods. Requests to donate using gift cards, cryptocurrency, or wire transfers can be red flags.
• Ask for help when needed. If you’re uncertain about how your donations affect your taxes, consider consulting a reputable tax professional.
• Remember that giving isn’t only about money. Donating your time, skills, or knowledge can create lasting change. Whether you’re helping a neighbor, pitching in at your church, or sorting donations at a food pantry, every act of kindness counts, even if it’s not tax deductible. For example, volunteers at Low Income Taxpayer Clinics and the IRS’s Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs give of their time and expertise to help taxpayers resolve complex IRS issues, understand their rights, or provide free basic tax return preparation to qualified individuals. Their service throughout the year represents the best of what Giving Tuesday celebrates.

Giving Generously, Giving Wisely

This holiday season, let your generosity shine bright. We all could use a little more light in our lives, and Giving Tuesday is the perfect way to shine yours on someone who needs it. Give with your heart and your head because your thoughtful donation can make a meaningful difference.

Be safe, stay smart, and enjoy the happiest of holidays.

Resources

• IRS: Tax Exempt Organization Search
• IRS: Charitable Contributions
• TAS Get Help: Charitable Contributions
• IRS: About Schedule A (Form 1040), Itemized Deductions
• IRS: Tax Tip 2024-91, Don’t let scammers ruin holiday gift card giving
• TAS Tax Tip: Taxpayers Need to Beware of These Popular Scams