In a few short weeks, church offices will be preparing Contribution Receipts for their donors. Here are a few guidelines concerning the issuance of Receipts:
- Single Gifts of $250.00 or more – The tax law sets single contributions of $250.00 of more must have a proper receipt. An annual summary of all gifts for the year is sufficient as long as it lists the gifts by date and amount.
- Receipts for the wrong type of gift – Churches should never issue a receipt for a volunteer’s time or use of property. A letter of “Thank you,” or reimbursement for expenses, as long as they are substantiated, would be allowed.
- IRS Wording on Receipts – Be sure the receipts are in writing and include the following:
- Church’s Name
- Church’s Federal ID #
- Giver’s Name
- The date the donation was made
- The Date the Receipt was issued
- As statement explaining whether the church provided any goods or services in exchanged for the contribution
- Non-Monetary Gifts – Churches are not appraisers, therefore, a receipt for a non-monetary gift should only include a description of the gift, without attempting to value it.
- Timing – Timing is everything. The law requires that receipts be provided in a timely manner. Typically, receipts are issued before January 31, of the new year. The donor will need the receipt no later than the due date (or filing date, whichever is earlier) for filing their tax return, otherwise the gift can be disallowed by the IRS.