Not long after President Biden's surprise withdrawal from the 2024 presidential race on July 21, he endorsed Vice President Kamala Harris for the Democratic nomination. Within hours, the Harris campaign amassed nearly $50 million in small-dollar donations through the online fundraising platform ActBlue. (Recent reporting indicates that fundraising day was the most successful ever for the site and that donations reached $81 million in the first 24 hours.) The campaign has since raised over $100 million.
This surge of monetary support highlights the impact of political contributions in the United States. But for some, the massive fundraising haul raises another key question: Are political donations tax deductible?
Campaign donations tax deduction?
Regardless of the amount or the recipient, the IRS says money given to political causes cannot be deducted from your federal tax return. This applies to contributions made to individual candidates, political parties, campaign committees, political action committees (PACs), or any organization that seeks to influence legislation or elections.
So, this rule applies whether political contributions are large or small, and to various types of donations including but not limited to:
- Payments for political newsletter subscriptions
- Purchases of tickets for political fundraising events
- Advertisements in convention bulletins
Whether you are donating money, goods, or services to a political cause, none can be claimed as tax deductions.
Political contributions vs charitable donations
It's important, however, to distinguish between political contributions and charitable donations.
Charitable donations typically refer to gifts made to organizations that qualify under Section 501(c)(3) of the Internal Revenue Code. As you may know, many charitable donations are tax-deductible.
Note: If you are volunteering for a political campaign, expenses incurred while volunteering for the campaign are not tax-deductible. This includes out-of-pocket costs for supplies, transportation, or any other expenses related to campaign activities. The value of your time or services provided to a political campaign is also not deductible.
Companies cannot deduct political donations, including in-kind contributions or advertisements in political convention bulletins, on their tax returns.
Political donation limits
It's worth noting that while political contributions are not tax-deductible, they are still subject to certain regulations and reporting requirements. The Federal Election Commission (FEC) limits how much individuals can contribute to federal candidates and political committees.
For this election cycle, the donation limit to a candidate is $3,300 per election, per candidate. Contributions to a PAC are limited to $5,000 per year.
If you are giving to a state district or local party committee, the limit is $10,000 per year, and for contributions to a national party committee, the limit is $41,300 per year.
Your election donation: Bottom line
Whether you're considering a small-dollar donation or a larger contribution for the upcoming election, your political contributions, while likely impactful for your favorite candidate's campaign, will not reduce your federal tax liability.
As always, for specific questions about your tax situation, it's good to consult with a qualified tax professional.
