Our church has been receiving missionary support for a couple who were getting ready to go overseas.
They were going through the process of being accepted by a missions organization at the time and have subsequently been accepted by that organization.
However, they asked that the support collected be deposited to their personal bank account and a 1099MISC be sent to them at the end of the year.
There has been no accounting for how the funds were spent up to this point. Is the 1099MISC the correct reporting instrument? Should the elders require an accounting of the funds?
Also, if we do it by sending a 1099 with no accounting, is the money still tax deductible to the contributors? This is a project the church agreed to support before funds came in.Answer
I believe that as long as your donors gave to your missions fund and made their checks out to the church their donations will be tax deductible.
As far as the church’s responsibility, I am not entirely sure how your church should handle this situation.
Hopefully, one of the wonderful CPAs that contribute to this site will give you further instructions, but if they don’t, I would definitely contact one and make sure your church does everything it needs to do to ensure your donor’s contributions are being handled properly.
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