Charitable Donation Definition

A charitable donation is any contribution of money, time, or property to a charitable cause. For the purposes of personal finance, charitable donations should be tracked throughout the year so that their value can be itemized on income tax filing. Only some charitable contributions qualify as deductions, however. The receiving charitable organization must be a tax-exempt non-profit organization-such organizations are often called "501(c)(3)" organizations in reference to the income tax code section under which they qualify.