Ep 96 ~ Navigating IRS Guidelines for Church Donations Over 250 Dollars

Navigating Church Finances: Keeping it Simple & IRS Compliant l Church Bookkeeping, Church Payroll, Minister Taxes

Episode Summary: In this episode of the Navigating Church Finances Podcast, host Michelle delves into the importance and proper handling of contribution statements for church donations. Using a personal experience as a backdrop, Michelle highlights the crucial elements that must be included in contribution statements according to IRS regulations. This episode is a must-listen for anyone handling church finances, ensuring donors receive the correct documentation needed for tax filing purposes.

Key Takeaways:

• • IRS Requirements for Contribution Statements:

    1. • Churches must provide written acknowledgment for single contributions of $250 or more.

       • Essential elements of a proper contribution statement:

         • Organization's name and possibly the EIN.

         • Donor's name.

         • Amounts of contributions – can be itemized or combined.

         • Description of any goods or services provided in exchange for the contribution.

         • A statement about whether any intangible religious benefits were provided.

    2. Recommendations for Creating Contribution Statements:

       • Outline a sample format for a contribution statement.

       • Emphasize the importance of delivering these statements before donors file their tax returns or before the tax return due date.

    3. Importance of Proper Documentation:

       * Encourages transparency and trust between donors and churches. * Ensures donors can claim deductions where applicable.

Michelle

https://churchfinances.org/resources