Service Vacation?

Can a donor give to the director of a non profit religious organization money to be used for a years of service vacation?


We are a 501(c)3 organization and we want to send our director and his wife on a vacation.

Donors would like to contribute to the vacation but can we give them tax credit?

All employees are considered missionaries and we raise our on support.

Would those donations need to be run through the directors support account?

He would then have to pay the taxes on the money given and the donors would receive tax credit or can we pay for the vacation if we establish a fund account such as a benevolence account?

Comments for Service Vacation?

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Feb 21, 2013
Service Vacation?
by: Anonymous in NC

My only question to the Board of Dirctors of this organization. . . In this non-profit organization, are you paying a salary to the director and his wife that is reasonable and prudent for the location's standard of living? If you are, then maybe they can budget their own vacation within their own salary. I seriously doubt that money solicited for this purpose is within the bounds of the reasons for this non-profit in the first place.

Feb 21, 2013
vacation benefit
by: Sandi

You should research the IRS pub 15 series, also here is a IRS link on benefits: http://www.google.com/url?sa=t&rct=j&q=irs%20employee%20vacation%20income&source=web&cd=5&cad=rja&ved=0CEoQFjAE&url=http%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-tege%2Ffringe_benefit_fslg.pdf&ei=HBomUY2UI8_wrAHHi4GAAg&usg=AFQjCNHIkuXZht90TPQngaBjWbn_8CVnAg&bvm=bv.42661473,d.aWM

Benevolence is normally a fund account for persons with "needs" not for benefits....so I would not encourage you to use that type of account

Individuals giving to individuals is not a deductable contribution, giving to a general fund that is for a "diverse group" is. *have a policy in place with a cap..(people can always give directly to individual)

Make sure you do not give more than is comparable for your area so your organization is not guilty of private benefits to the employee.

Paying for vacation would be taxable income to the employee (added to W-2 box 1 amount)

Prayers

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