Irs rules for donation tax deductions in 2025: what you need to know?

09/07/25

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Giving with Confidence: What Donors Need to Know in 2025

If you are a dedicated taxpayer and believe in giving, the system rewards you for your contributions. As per the new Indian Revenue Service(IRS) guidelines, there are several ways by which you can benefit from your good deeds towards charitable donations. Whether you have been donating for a while or are planning to contribute for the first time, the knowledge of IRS rules can help you make the most out of your good deeds. 

In 2025, updated guidelines around donation tax deductions and donations tax exemption are making it even more important for donors to be informed. This guide will show you how you can do so!

What Are IRS Rules and Why Should You Care?

IRS is the abbreviation for Internal Revenue Service. It is a tax authority in the United States that is dedicated to watching over overseas taxation policies and processes, especially those concerned with charitable donations. With technological advancements and better connectivity, many of us seek to in India extend our generosity beyond borders. We do this by supporting global causes, contributing to international charities, and participating in emergency appeals. In that case, it becomes essential to understand the laws of the IRS and the Internal Revenue Code meaning to be better aware of these guidelines. It helps the US taxpayers in the US with financial links abroad to make legitimate contributions.

Key Changes in IRS Rules for 2025

IRS rules have been transformed for the better, and those donating to indulged in charitable organisations should keep themselves aware about them posted on it. Let us break them down simply here: 

Standard Deduction vs. Itemised Deduction

So, basically, to claim any form of donation tax deduction, you should itemise your deductions on your tax return. As per the standard deduction in 2025, which is slightly increased to adjust for inflation, if your total itemised deductions, including your charitable giving, exceed the standard deduction, you can claim a tax benefit. 

Cash Donation Limits

For the 2025 tax year, the cash donations are deductible up to 60% of your Adjusted Gross Income (AGI). However, those donations should be eligible as per the qualifying organisations. Meanwhile, any amount exceeding this limit is allowed to be carried forward for up to five years. By working with legitimate organisations, such as Bal Raksha Bharat (also known as Save the Children India), you can make sure your global donations are compliant and traceable. 

Non-Cash Contributions

Donations in the form of property, stocks, or other non-cash items have the following criteria:

• You must have an independent appraisal for items valued above $5,000.
• You should fill out IRS Form 8283 for all sorts of non-cash donations.

This formality is only to ensure that your generosity is valued and recorded accurately. 

Overview of Key IRS Donation Rules for 2025

As the wWording of the IRS donation ruless can be become tricky to understandcontemplate, so here’s a short table to help you grasp everything about the IRS rules.

Read Also: 80G Deduction Explained: Which Donations Qualify for Tax Benefits?

How to Claim a Donation Tax Deduction

Giving from the heart does not include the worries of planning and calculations, but you must plan the deductions and claims you are eligible for. After all, you deserve to be rewarded for your deeds. Therefore, it is required to keep track of your donation tax deduction. These are the following things you need to take care of:

Donate to Qualified Organisations

You must ensure that the NGO or charitable organisation that you are donating to is recognised under the IRS Section 501(c)(3). Bal Raksha Bharat has donation partnerships that are structured to ensure that your contributions make it to the cut. 

Collect Acknowledgement Receipts

Never forget to get the receipt for your donation. This, and that documentation should include the following details:

• The name of the organisation
• Date of the donation along with the amount 
• A statement that confirmed whether goods or services were exchanged in the case of non-cash donations

Maintain Accurate Records

This is a must! You simply can not let the documentation get lost slide off in a pile of papers. Be vigilant about each of your contributions. Keep digital or printed records of your donation history to use when filing your taxes. It will offer accuracy, transparency and confidence. 

Income Tax Exemption: A Win-Win for Donors and Organisations

The donations tax exemption claim is a must. Why? Because it is beneficial to you financially, it also helps organisations like ours us to keep working on the mission. It also encourages people to strengthen Bal Raksha Bharat from the core. When you choose to support us, we channel put the funds to support children’s education, nutrition, health care, and also protection. While contributing to the cause directly, you also receive rewards for your empathy in the form of income tax exemption. 

Internal Revenue Code Meaning: Simplified

People may find it overwhelming to understand complex structures, such as the Internal Revenue Code meaning, but at its core, it is only a collection of tax laws. It helps you understand what is permissible and beneficial in the eyes of the US government and what is not. Within this code:

• Section 170 covers charitable contributions and gifts.
• It details which donations can be deducted and the the limits for it, and. Along with that, you also can also see which know what documents are needed under this Sectionfor the same. 

How Bal Raksha Bharat Supports Transparent Giving

At Bal Raksha Bharat, a child welfare NGO, we are committed to the transparent, ethical, and efficient use of resources by implementing several layers of verifications and records. We keep track of all donations, whether they are local or international. We properly record and use these funds in programmes that align with the cause and goals of the children. 

We closely examine the global partners to deliver a platform and channels that are smooth and accurate for the donors. It allows them to contribute in a tax-compliant way. From issuing digital receipts to providing annual impact reports, we take every step to make our donors take pride in their deeds.

Final Thoughts

Donations are not just financial transactions; you put your hard-earned money towards a cause that means something to you. It offers you a sense of fulfilment that you did something for the betterment of the world. At Bal Raksha Bharat, we honour and are humbled by each and every donor who shares our mission. So, you can start here by supporting our dream of helping every child survive, learn, and thrive.

Understanding the IRS rules and knowing how the donations work for the betterment of your own along with the cause, you can make a better choice. It will open doors for you to not only make a difference but also do it wisely.

Anikait Suri