Are Grants Tax-deductible?

by Richard
(Georgia)

A member in our church has his private ministry to the marginalized but has no NPO.

Can our church or NPO receive donations for this guy’s ministry and write grants to his ministry and give donors to this grant a tax deductible receipt?

Also does the receiver of the grant need to pay taxes on 100% of the grant less his expenses.

Comments for Are Grants Tax-deductible?

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Donations to Individuals
by: Vickey

Donations to an individual are not considered tax deductible contributions, so you could not issue a giving receipt for any "pass thru" donations given to that individual.

See this article on Contributions to an Individual.

Also, since his "private" ministry is not part of your church and not an official NPO ... any funds given to that individual should be considered taxable income for him and appropriate tax reporting forms filed and issued to him.

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