Contribution Rules
Local churches depend on contributions from their membership for the
operation of the organization. Churches are generally
listed with the IRS as 501(c)(3) tax-exempt organizations, which
allows individuals a tax deduction for contributions made to it.
(At this time this deduction is only available to those who itemize deductions.)
It is important to realize that cash contributions must be
documented in order to be allowed as tax deductions. Even contributions
under $250 require either a receipt from the church, or a cancelled check.
Simply keeping records of cash contributions is
no longer sufficient. (For more details, see the article about the
change in contribution rules in 2007.)
Contributions of $250 or more still require a receipt from the organization in order to qualify for a tax deduction.
Churches should provide an annual statement documenting recorded contributions. This statement must include the declaration
that the doner received no benefits from the donation except for intangible religous benefits.
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