Contributions designated for other tax-exempt organizations

We have members that will make a check out to our church but specify that those funds are for other local tax-exempt organizations such as a food pantry, etc. It has been our practice to include those donations on their annual contribution statement even though the funds are sent to the organizations designated and are not intended for our church. Is is acceptable to include those donations on our statements?

Comments for Contributions designated for other tax-exempt organizations

Click here to add your own comments

Nov 02, 2012
gifts to other tax exempt orgs
by: Anonymous

Although it is ok to give to other tax exempt orgs the church needs to be careful that the funds they give meet their mission and do not become so high that the IRS consider them to "control" your org.

Their is no set percent (or dollar amount)to follow which makes it harder to figure, so make sure you have documents with your payments to ensure they meet your mission.

Having a policy in place with dollar amount caps will help and it's always good to state in the policy that funds over the cap will go into the general fund. If individuals are not comfortable with your church policy they always have to option of giving directly to the other org.

so... if you have a policy in place it can be included on the individuals statements for tax deductible contributions. They are giving to the church and the church has complete control over the donation (this statement should also be on all donation policies)

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Contributions .

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.