The issue of how to handle charitable contributions is a good problem for any church to have. It's easy to avoid financial complications arising from contributions if you follow these simple tips.
- You're in charge. The church must approve of a love gift and control how the money is spent for the gift to be considered a charitable contribution.
- Different gifts have different rules. Love gifts are allowed in four specific circumstances. Each type of love gift has its own set of rules determined by the IRS.
- Just say "No." Some gifts, such as land gifts, can be costly or burdensome to maintain. You can decline any gift that you can't use or that has financial risk.
- Be prepared to issue a receipt. The donor may ask for a receipt for tax purposes. The IRS has specific rules about when a receipt is needed and what information should be included.