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:

IRS Requirements for Contribution Statements:

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

Essential elements of a proper contribution statement:

Organization's name and possibly the EIN.

Donor's name.

Amounts of contributions – can be itemized or combined.

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

A statement about whether any intangible religious benefits were provided.

Recommendations for Creating Contribution Statements:

Outline a sample format for a contribution statement.

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

Importance of Proper Documentation:

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

Michelle

https://churchfinances.org/resources