Cash Contributions

• In most cases, the IRS allows you to deduct the amount of your cash contributions up to 50 percent of your adjusted gross income. Different tax rules apply to contributions you make that offer you a benefit in return. The IRS only allows you to take a tax deduction for the difference between what you paid and the market value of the benefit you received. For example, if you purchase a charity banquet dinner ticket that cost $100 per ticket, but the market value of the ticket is only $25, you can take a tax deduction of $75 if all ticket sale proceeds go back into the charity.