Our church is planning on allowing a quartet that performs sacred music to hold a concert at the church.
The quartet wants to collect a freewill offering. They are not a tax-exempt entity.
How do we handle this?
Allow the offering and write a check for the amount and 1099 them? Does the fact they are not tax exempt pose a problem?
I assume this would not be a tax deductible donation to the donors? Any help is appreciated. Thanks!
1Comments
Get a W9!
VVickey
As long as the church has "control" of the money taken up, the donations received will be tax deductible for the donor.
For example, the offering may be $150 and the church has the "control" by deciding how much ...if any to give to the group.
Using the that example, the church writes the group or group leader a check for $200. Records the donations in the donors' record...because the church had "control" of the donations.
Collects a completed and signed W9 BEFORE handing over the check.
Files a 1099 ...if the amount "given/paid" COLLECTIVELY over a calendar year...was over $600.
EVEN if you do not anticipate the group singing again at your church the rest of the year...and the check you wrote was under $600...get a completed W9 to file at your church!
For example, the offering may be $150 and the church has the "control" by deciding how much ...if any to give to the group.
Using the that example, the church writes the group or group leader a check for $200. Records the donations in the donors' record...because the church had "control" of the donations.
Collects a completed and signed W9 BEFORE handing over the check.
Files a 1099 ...if the amount "given/paid" COLLECTIVELY over a calendar year...was over $600.
EVEN if you do not anticipate the group singing again at your church the rest of the year...and the check you wrote was under $600...get a completed W9 to file at your church!