Reporting of Cash Gifts to Non-Employees

by Yelrab
(Winchester, VA)

Benevolence Payments Taxable?

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.

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Vickey's Reply

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.

Comments for Reporting of Cash Gifts to Non-Employees

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Sep 17, 2013
Reporting of Cash Gifts to Non-Employees
by: Ken

I think you will find documented in several places that small gifts in the range as you mentioned are allowable by the IRS with out tax consequences and the IRS has a name for them.

If you were to a sizable gift to a non-employee of $600 or more, then you would need to have their SS# and personal address so you could send them a 1099-Misc in Jan of the new year.

Feb 16, 2016
cash gift to retired employee from church committee
by: Anonymous

Can a church committee give a retired employee a cash gift of $5000 without the former employee having tax consequences?

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