How To Give More And Pay Less (In Taxes): 6 Ways To Maximize Charitable Donations

UPDATED for 2025

Want to make the most out of your charitable donations for taxes this year? Learn how to give more and pay less (in taxes)!

I went into business not only to make big money but also to make significant CHANGE in the world. I’ve found that most of my clients feel the same way.  Most of the people I work with are heart-centered creatives who want to make an impact while making money. But if you’re in business for yourself, you really can do both at the same time. This is where charitable donations come in.

After all, in entrepreneurship, the lines between our personal lives and business lives are a little bit blurred at times. We do what we love to make money, and what we love is a part of who we are. 

This is where “making an impact” becomes about more than how you serve your clients. It’s how you use your money for the greater good.

This is where charitable donations for taxes can make a huge difference not only in positive impact but also for your pocketbook.

You know that supporting charities and organizations you care about makes you feel amazing. You also understand that the donations you give can translate into tax deductions for your business. It seems like a win-win, right?

That leads me to one of my mottos when it comes to donations and deductions:

Give more, pay less! (In taxes, that is) 😉 

It’s coming up on the end of the year. But you’ve still got time to support the charities and causes you love and translate it not only into making a difference, but also saving money at tax time!

Here are 6 quick tips to help you make the most out of your charitable donations for taxes this year.

1. Check your organization’s Tax Status. If you’re looking to get donation credit for tax purposes, check the tax status of the organizations for which you volunteer or donate. Be sure that they are all registered as a 501(3)(c) organization. (This is the IRS’s designation for tax-exempt charitable organizations.)
2. Mark referral gifts to your clients as “referral fees.” Do you love giving gifts to your clients for sending you referrals? Be sure not to mark them as gifts, but as referral fees. The maximum deduction for gifts is $25, but referral fees are unlimited. This way, your tax deduction amount won’t be limited, and you can still give back to your clients.
3. Volunteer time + “give back” in-person. Volunteering time doesn’t create a charitable deduction in itself (you can’t deduct the value of your time), but you can deduct out-of-pocket costs (travel, materials) if properly documented and if the charity qualifies. Not only is this a great way to bond with your team, but it’s also an opportunity to advertise your business (with matching t-shirts, for example). Best of all, it’s a chance to give back to your community, “IRL.” You could host a free workshop for your target audience at a non-profit, and track your expenses (venue rental, travel, refreshments) as business-promotion and charitable outreach.
4. Be a sponsor. Sponsoring an event or an organization is another fantastic option. You can sponsor a charitable event, a local youth team, a marathon runner–the possibilities are endless. It’s an excellent option for a busy entrepreneur. 
5. Make giving back part of your referral program. Every time you get a new client or a new client referral, donate in their name to a charity. It can be a charity of yours or their choosing, which opens up your opportunities to make an even more significant impact. This does two things: (a) strengthens your relationship with the new client; (b) gives you a deductible donation (assuming you make it from your business or personally).
6. “Gift away” your services! Speak at a local non-profit, gift an hour session to a new client, or put up something free in a raffle. Maybe host a free workshop in your community. Not only will this will provide a taste of your services to an untapped market, but it’s also a write-off for you. While donating your time isn’t deductible, the marketing and goodwill are real; and any out-of-pocket cost you incur (materials, travel) may be deductible.

Key Tax-Law Changes for 2026: Starting tax year 2026, individuals who do not itemize deductions will be able to claim a charitable deduction for cash gifts to qualifying public charities: up to $1,000 for single filers, $2,000 for married joint filers. There will be a new floor for charitable contributions deduction: only amounts above 0.5% of AGI are deductible if you itemize. This is something to keep a pulse on for your personal taxes.

That’s it! Keep these tips in mind when you’re looking to get tax deductions from your donations, and you’ll have a far easier time when tax time rolls around. 

Now, I’d love to hear from you! What organizations do you love to support? I’m always on the lookout for new ways to help make a positive impact in the world, so share your favorite charities below.

Until Next Time,

Love, light, and MONEY, Honey…

Kaylee