I’ve worked in church finances for almost 20 years now. Almost every time I receive a noncash donation (such as stock or a piano or grain), the donor wants a receipt and often they want you to include on that receipt the value of the donation. The church is not equipped to value noncash gifts which amount to providing tax advice. The IRS recognizes this and warns donees to not value these gifts.
So what do you do if the donor insists on you valuing the gift? Here’s what I do. I normally visit with the donor and let them know that the IRS doesn’t allow the church to give an amount for the value of a noncash gift. I let them know that we’ll give them a receipt that has all the details they need for any tax professional to figure out the value. In the video I detail how to fill out the receipt, and I have a template linked below.
Check out the video below:
- IRS Guidance: https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-organizations-substantiating-noncash-contributions
- Noncash Gift Receipt Template: https://www.dakotasumc.org/media/files/old/00/Conference/Finance/FinAdminRes/noncash_gift_rcpt.docx
- Connect with Bruce Blumer: https://bruceblumer.com/pathvisor/