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:

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    IRS Requirements for Contribution Statements:

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

         
         
       
       
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         Essential elements of a proper contribution statement:

         
         
         
         
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           Organization's name and possibly the EIN.

           
           
         
         
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           Donor's name.

           
           
         
         
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           Amounts of contributions – can be itemized or combined.

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

           
           
         
         
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           A statement about whether any intangible religious benefits were provided.

           
           
         
         
         
         
       
       
       
       
    
    
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       Recommendations for Creating Contribution Statements:

       
       
       
       
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         Outline a sample format for a contribution statement.

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

         
         
       
       
       
       
    
    
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       Importance of Proper Documentation:

       
       

                      

       
       

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

       
       
    
    
    
    
  
  
  
  

Michelle

https://churchfinances.org/resources