What’s the worst thing that could happen if I don’t keep the IRS in mind when issuing Giving Statements or something to acknowledge gifts? Well…the IRS could disallow the donors charitable tax deduction which would lead them to have to pay more taxes. This would probably lead to a ticked off donor who will likely share this with other donors. You’ve basically discouraged anyone from wanting to give too generously to your church.
It really isn’t that hard to keep the IRS happy. All you need to do is properly document the gift (what did they give, who did they give it too, when did they give it) and include a simple statement that the donor didn’t receive any goods or services in exchange for the gift except for intangible religious benefits. You can sneak these element in and still have a nice “Thank you.”
Check out the video below:
- IRS Guidance: https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contributions-written-acknowledgments
- Dakotas UMC Resources: https://www.dakotasumc.org/finance-and-benefits/finance/finance-and-adminstrative-resources
- Giving Statement Template: https://www.dakotasumc.org/media/files/old/00/Conference/Finance/FinAdminRes/Giving_Stmt.docx
- Giving Statement for Gifts Over $250: https://www.dakotasumc.org/media/files/old/00/Conference/Finance/FinAdminRes/Template_for_Gifts_Over_250.docx
- Non-Cash Gift Receipt: https://www.dakotasumc.org/media/files/old/00/Conference/Finance/FinAdminRes/noncash_gift_rcpt.docx