Reporting of Cash Gifts to Non-Employees
Benevolence Payments Taxable?
I have seen and read many articles concerning the giving of cash or cash equivalent gifts to Pastors and other employees.
However, I have never seen an article, post or ruling on the taxing of cash or non-cash gifts to non employees.
For example, the church as a mission or ministry gives a $25 gift card to a homeless person, or gives a gift card to a stranded motorist needing gasoline. Is this gift taxable income?
How should these gifts be documented and do we need to obtain the name, address, SS#, etc. for the receiver of the gift?
Is there a limit to the size or annual amount that can be given before it is reportable? Thank you.
FreeChurchAccounting Accounting Packages and Products
Benevolence payments are not usually taxable to the recipients, but documentation is very important for proper justification and reporting. See this page on administrating a benevolence fund.