When you’re considering making contributions or donations that benefit a political candidate, party or cause, it’s important to know that they are not tax deductible. That includes donations to:

• Political parties
• Political committees
• Individual political candidates
• Political action committees (PAC)

Payments made to the following political causes are also not tax deductible:

• A newsletter fund
• Advertisements in a political convention program or politically affiliated publication
• Cost of admission to a political event, including dinners that benefit a candidate or party

What about volunteer time and out-of-pocket expenses?

Time spent and expenses incurred volunteering for a political campaign are also not deductible. This includes things like supplies and transportation to and from campaign events. IRS regulations make it clear that neither volunteer time nor out-of-pocket expenses donated to political candidates and parties can be deducted from gross income for income tax-filing purposes.

Are political contributions tax deductible for businesses?

Businesses cannot deduct contributions they make to political candidates and parties, or expenses related to political campaigns. And if you check the box that asks if you want to give $3 to the Presidential Election Campaign Fund when you’re filing your tax return, that isn’t deductible either.

Political contributions vs. charitable donations

All of this can catch some people by surprise because contributions of cash and property can be tax deductible if you meet certain criteria and itemize deductions on your tax return. Charitable donations are tax deductible under certain conditions, so why aren’t political contributions?

Tax-exempt charitable organizations — also known as 501(c)(3) organizations — are specifically prohibited from attempting to influence legislation or participating in political campaigns.

Political campaigns cannot be classified as charitable or 501(c)(3) organizations. And political donations cannot be treated the same way as tax deductible contributions.

If you’re unsure about whether a donation you have made is considered political or not, use the IRS Tax-Exempt Organization Search Tool to see if the organization you donated to is classified as a 501(c)(3) organization.¹

Limits on political contributions

Note that even though political donations are not tax deductible, the IRS still limits how much money you can contribute for political purposes.²

For 2023 – 2024 federal elections, an individual may donate:

• Up to $3,300 to a candidate committee in any one federal election
• Up to $5,000 to a PAC annually
• Up to $10,000 to a local or district party committee annually
• Up to $41,300 to a national party committee annually

What is a deductible charitable contribution?

Given that political donations aren’t tax deductible, it’s important to familiarize yourself with IRS rules regarding the deductibility of charitable contributions.³

You can generally deduct cash, securities, and property donated to qualified charitable or 501(c)(3) organizations on your federal income tax return. Be sure to keep good records supporting your charitable contributions.

Cash contributions

For cash contributions, keep a canceled check, bank, or credit card statement or a receipt or letter from the charity that shows the charity’s name and the date and amount of the contribution. For contributions of $250 or more, you must get a written acknowledgement of your donation from the charity.

Non-cash contributions

For non-cash contributions of at least $250 but not more than $500, you must obtain a contemporaneous written acknowledgement (CWA) from the charity that contains a description of the property.

For non-cash contributions valued at between $500 and $5,000, you must obtain a CWA that includes how and when you obtained the property and the cost or other basis of the property. You must also complete Form 8283.

For non-cash contributions valued at more than $5,000, you must have the CWA, obtain a qualified written appraisal of the donated property from a qualified appraiser, and complete Form 8283.

The bottom line

Regardless of how much time, money or effort you pour into a political candidate, party or cause, you won’t be able to score a tax deduction on your federal return.

You may still be able to lower your taxable income by claiming other deductions, including:

• Itemized deductions, such as mortgage interest, state and local taxes and medical expenses exceeding 7.5% of your adjusted gross income.
• Education deductions, such as student loan interest.
• Investment deductions, such as certain contributions to a traditional IRA.
• Business deductions, such as costs for a home office, work equipment or the self-employment tax.

Be sure to consult with a tax professional if you have questions about the deductibility of political donations or charitable contributions. This information is not intended to be tax advice.