Following the Rules for Love Gifts
Following the Rules for Love Gifts
When it pays to get tough on contributions.
PAGE 1 of 7Single Page

Christ commands us to love one another. Since the church follows his commands, the church wants to express that love, usually by blessing someone with a love gift. Frequently, the church will receive a love offering for someone in need or in appreciation of a member. The Internal Revenue Service does not mind love gifts as long as the church follows the tax rules. This article details those rules.

Donor Rules

In all instances, the church must approve the love gift and take control of the contributions. For example, if Ms. Myway wants to bless Pastor Loving by giving him a love gift through the church, then the church should not accept that gift. Ms. Myway is controlling how the money is spent. On the other hand, if the church decides to bless Pastor Loving with a love gift, it may accept the donation from Ms. Myway. If the church controls how the money is spent, then the donation qualifies for charitable contribution credit. On the other hand, if Ms. Myway is using the church as a conduit to give a personal gift to Pastor Loving, then she does not have a tax-deductible contribution and the church has risked its tax-exempt status.

Posted: March 1, 2013

Like This Article?

If you enjoyed reading this article, get more like it. Become a Church Law & Tax member today.

Learn more

Already a member? .

View All
from our store
Talking to Your Congregation About Money

Talking to Your Congregation About Money

Helpful insights on talking about money and encouraging people to become generous givers.
Church Finance

Church Finance

Learn about budgeting, financial reporting, tax compliance, insurance coverage, and more.
Charitable Contributions Bulletin Inserts

Charitable Contributions Bulletin Inserts

Help your members give more by answering their charitable giving and tax law questions.
Church Fundraising Campaigns

Church Fundraising Campaigns

Discover tips on raising and borrowing money.

ChurchSalary

ChurchSalary

Experience a whole new way to set compensation. Eliminate the guesswork – get access to detailed compensation reports in just minutes.