How much of a cash donation made to a qualified charity is generally deductible?

For cash donations made to qualified charities, the general rule allows taxpayers to deduct up to 60% of their adjusted gross income (AGI) in a given tax year. This limit is an essential aspect of charitable giving and ensures that individuals can receive a tax benefit for their generosity while also maintaining a balanced approach to tax revenue.

The 60% limit applies specifically to cash contributions made to entities recognized under IRS guidelines. It's important to note that this percentage may differ based on the type of contribution or the type of entity receiving the donation. For example, donations made to certain private foundations or limiting conditions on property contributions would have different percentage limits.

This 60% cap is particularly relevant in the context of individual taxpayers, allowing higher deductions for cash contributions compared to non-cash contributions, where the limits can be lower. Understanding these percentages is crucial for taxpayers looking to maximize their deductions while remaining compliant with IRS regulations.