Where Do I Put Church Donations on Taxes?

Making charitable contributions allows individuals to support causes they value while reducing their taxable income. Understanding the tax implications for donations to religious organizations can be confusing. Accounting for these gifts requires knowing what qualifies as deductible, the necessary documentation, and where to report them. This article guides you through including church donations when filing taxes.

Understanding Eligible Church Contributions

Contributions to churches, recognized as public charities under Section 501(c)(3) of the Internal Revenue Code, qualify as tax-deductible gifts. The Internal Revenue Service (IRS) does not specifically define “church.” However, it uses characteristics like a distinct legal existence, a recognized creed and form of worship, established places of worship, and regular congregations to determine if an organization qualifies.

Qualifying contributions include cash, checks, electronic transfers, and appreciated property like stocks or real estate. Non-cash items, such as clothing or household goods, may also be deductible if in good used condition or better. However, not all payments to a church are deductible. For instance, services performed for a church are not deductible, nor are payments for raffle tickets, religious school tuition, or the portion of a payment from which a donor receives a personal benefit.

When a donor receives a benefit in return for a contribution, this is a “quid pro quo” contribution. Only the amount exceeding the fair market value of goods or services received is deductible. For example, if an individual pays $100 for a concert ticket from a church with a fair market value of $40, only $60 is deductible. If the payment for a quid pro quo contribution is more than $75, the organization must provide a written disclosure stating the deductible amount is limited to the excess of the payment over the value of the goods or services received.

Gathering Necessary Documentation

Proper documentation is essential for substantiating church contributions. Specific records are required for cash contributions, including checks, electronic funds transfers, or credit cards, based on the amount.

For cash donations under $250, a bank record (e.g., canceled check, bank statement, credit card statement) or a written communication from the church showing its name, date, and amount is sufficient.

For cash contributions of $250 or more, a contemporaneous written acknowledgment (CWA) from the church is required. This acknowledgment must state the cash contribution amount and whether any goods or services were provided in return. If benefits were received, the acknowledgment must also include a good faith estimate of their value. This CWA must be obtained by the earlier of the tax return filing date or the return’s due date, including extensions.

Non-cash contributions have specific documentation requirements. For items valued under $250, maintain a written record including the organization’s name, date, property description, and fair market value. For contributions between $250 and $500, a written acknowledgment from the church is necessary, similar to cash contributions of $250 or more, along with a description of the donated property.

If total non-cash contributions exceed $500, taxpayers must complete and attach Form 8283, Noncash Charitable Contributions, to their tax return. For non-cash contributions exceeding $5,000, a qualified appraisal of the donated property is required, with information included on Form 8283. Keep all records for potential audit purposes.

Reporting Contributions on Your Tax Return

Individuals deduct church donations and other charitable contributions by itemizing deductions on Schedule A (Form 1040). Taxpayers choose between itemizing or taking the standard deduction. Itemizing is beneficial if total itemized deductions exceed the standard deduction for their filing status. The standard deduction amount is fixed, varies by filing status, and adjusts annually for inflation.

On Schedule A, cash contributions are reported on Line 11, non-cash on Line 12. Total charitable contributions deductible in a single tax year are subject to Adjusted Gross Income (AGI) limitations. For cash contributions to public charities, including churches, the deduction is limited to 60% of the taxpayer’s AGI. For non-cash contributions to public charities, the limit is 50% of AGI, or 30% of AGI for appreciated capital gain property.

Contributions exceeding these AGI limits can be carried over and deducted in up to five subsequent tax years. Carryover contributions remain subject to the original percentage limits. Note that temporary provisions allowing higher AGI limits or non-itemized deductions for cash contributions in prior years (such as 2020 and 2021) are no longer in effect.

Individuals aged 70½ or older may consider Qualified Charitable Distributions (QCDs) directly from their Individual Retirement Accounts (IRAs). A QCD allows an IRA owner to transfer up to an annual limit ($108,000 per individual for 2025) directly to a qualified charity. This amount is excluded from taxable income and can count towards satisfying required minimum distributions (RMDs) once the IRA owner reaches RMD age, 73. QCDs are not reported on Schedule A as deductions but reduce taxable income directly.