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.