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Monetary exchange contribution
Posted: Mon May 15, 2017 10:32 am
by gmLOL
We have someone who makes contributions to the church by purchasing items needed, but wants these to show up as a contribution on his contribution statement. In the past, this has been done by paying him a check for the store receipts and then he signs the check back over to us which then goes through the counters. Surely there is a simpler way to do this?
Re: Monetary exchange contribution
Posted: Mon May 15, 2017 10:41 am
by NeilZ
gmLOL wrote:We have someone who makes contributions to the church by purchasing items needed, but wants these to show up as a contribution on his contribution statement. In the past, this has been done by paying him a check for the store receipts and then he signs the check back over to us which then goes through the counters. Surely there is a simpler way to do this?
While this may have been done in the past, the IRS no longer allows such to be done. If the item bought for a donation to a non-profit charity of any type, the charity MUST NOT assign any value to the item. That is for the donor to do when they file their taxes. All we do is issue a letter thanking the donor, with a description of the item, and the date given.
Here's a link to an answer I gave to someone asking much the same question:
https://www.powerchurch.com/forum/viewt ... 581#p40534
Re: Monetary exchange contribution
Posted: Mon May 15, 2017 11:10 am
by gmLOL
To clarify, these items are purchased for the church. Bushes, plumbing equipment, etc. When I reimburse the member, he signs the check over to us as a contribution. I just wondered if there is a simpler way to do this, but I assume not because of the tax laws in place.
Re: Monetary exchange contribution
Posted: Mon May 15, 2017 11:54 am
by NeilZ
gmLOL wrote:To clarify, these items are purchased for the church. Bushes, plumbing equipment, etc. When I reimburse the member, he signs the check over to us as a contribution. I just wondered if there is a simpler way to do this, but I assume not because of the tax laws in place.
As I mentioned above ... there is no easier way to do this per IRS non-cash contribution rules.
Re: Monetary exchange contribution
Posted: Wed May 17, 2017 10:32 am
by gmLOL
Thank you. I was afraid of such. Would love to save a couple of steps, but I guess it is not to be! I appreciate having someone to bounce the ideas with, wish I had thought of coming here long ago!