Jump directly to the Content

Q&A: How should my church handle a donation of a US Savings Bond?

The church may not issue a charitable contribution receipt.

Last Reviewed: March 9, 2021
Q&A: How should my church handle a donation of a US Savings Bond?
Image: Douglas Sacha | Getty

I just recently received a donation of a US Savings Bond. I have been a church administrator for 30 years and have never processed such a donation. What do I need to know in order to accept this contribution and issue a receipt?

US Savings Bonds are nontransferable. This means that the owner may not donate them to the church. The church may not issue a charitable contribution receipt because the donor does not have the power to transfer the bond to the church. As a result, the church did not secure ownership of the bond. Without an ownership transfer, there is no deduction. If the donor wants to have the savings bond reissued in the name of the church, the donor must cash the bond. The donor then must recognize the interest income at the time of the reissuance.

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • November 30, 2018
  • Last Reviewed: March 9, 2021

Related ResourcesVisit Store

Receipts for Donors
Receipts for Donors
16 letters and forms for providing receipts to donors for different donations.
Politics and the Church
Politics and the Church
Tax and legal guidelines faith-based organizations need to know before jumping into the political fray.
2021 Church & Clergy Tax Guide (Book)
2021 Church & Clergy Tax Guide (Book)
The most comprehensive and authoritative tax guide available.
Best Practices for Receiving Charitable Contributions
Best Practices for Receiving Charitable Contributions
Practical help and clear understanding on issues surrounding charitable contributions.