Charitable Gifts: Date of Delivery Rules

The IRS’s basic rule is that a gift must be “delivered” to the church by December 31 for it to count as a contribution for that year. The date of delivery depends on how the gift was made and delivered. Here is a quick summary of the year-end cutoff for various gift delivery methods: In…

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How to Write a Church Donor Acknowledgement Letter

The IRS sets out that acknowledgments must be provided “in writing, at the time of solicitation or when the payment is received, and in a way that will come to the attention of the donor,” according to IRS Publication 1771. For the letter to be considered “contemporaneous” with the contribution, “a donor must receive the acknowledgment by…

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How to Value Noncash Charitable Contributions

If you donate property to a nonprofit such as clothing, electronics, books, or furniture, you need to determine how much it is worth when you donate it. The basic rule is that you may deduct no more than the property’s “fair market value” at the time of the donation. But fair market value can be…

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Giving Strategies to Charity Under New Tax Law

Changes to the tax law in 2018 have taken away most people’s ability to deduct charitable contributions. But there are still a few options to consider in order to give and still receive. Fortunately, there are options for donors who would like to obtain a tax benefit for their generosity. One permits anyone 70½ or…

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Dues versus Contributions

Ministers often pay a small annual renewal fee to maintain their credentials, which constitutes a deductible expense. However, ministers’ contributions to the church are not deductible as business expenses. Many may argue that they are expected to donate generously to the church as part of their employment. This is not sufficient to convert charitable contributions…

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Donating cash to a church

The IRS has various record-keeping and documentation requirements, depending on the amount of cash you donate to a church. Whenever you make a cash donation to your church, you must retain either a receipt, canceled check or a bank or credit card statement. It’s not necessary for you to send these to the IRS, but…

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Find charities you can trust and support

You can browse charities that have been evaluated by Charity Navigator by category – such as education or human services – to identify groups you want to support. Having a giving plan will make it easier to avoid making impulse donations.

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6 Ways to Make the Most of Your Charitable Giving

A qualified tax professional can advise you on the best methods for your situation. Here are a few strategies to consider when gifting: Take advantage of the annual gift tax exclusion. It allows you to give away up to $14,000 to as many people as you wish without those gifts counting against your $5.49 million lifetime…

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Tax Deduction That Could Lead to an Audit

Getting audited can be the worst nightmare for clergy, but that shouldn’t stop you from taking advantage of the tax deductions you’re legally entitled to take. You should just take care to make sure you have the documentation you need to back up your deduction if the IRS decides to take a closer look at your return….

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Donating a Car to a Charity?

It’s easy to donate a car to charity if all you want to do is get rid of it. Simply call a charity that accepts old vehicles, and it will tow it away. If you want to maximize the benefits for both the charity and yourself, however, it’s more complicated. Until 2005, it was easy…

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