One of the best ways for a church to respond to a donor’s gift is to be sure the written acknowledgment of it meets IRS requirements so that the donation is tax deductible. Items such as clothing, jewelry, and cars may be given to a church, but church treasurers should be aware of the IRS requirements for certain values and types.
The November issue of Church Finance Today helps guide church treasurers through the IRS requirements for substantiating noncash contributions. Different rules apply for different values of donations. Donations for clothing and household items have specific requirements. Special rules also apply for deductions related to contributions of cars, boats, and airplanes.
The article on this topic is written by Michael E. Batts, a CPA with more than 25 years of experience advising churches. He’s the managing partner of Batts Morrison Wales & Lee, P.A., an accounting firm dedicated exclusively to serving nonprofit organizations across the United States. He is a member and former chairman of the board of the Evangelical Council for Financial Accountability (ECFA), a national organization that accredits Christian organizations in the areas of financial integrity, accountability, and governance. He is the co-author of Church Finance.
Church Finance Today keeps church treasurers and bookkeepers informed with timely and practical information on issues all churches face when managing money: internal controls, compensation, reporting, and budgeting. In addition, subscribers receive SkillBuilders, a bi-monthly supplement offering specific steps to improve money management practices. Subscribe now to Church Finance Today.
Christianity Today is a nonprofit, global media ministry that equips Christians to renew their minds, serve the church, and create culture to the glory of God.
(Source: Christian Newswire)