Reporting of Cash Gifts to Non-Employees

by Yelrab
(Winchester, VA)

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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regular gifting to non employes who perform altruistic acts
by: Anonymous

What are the obligations of a recipient of a regular gift from a non profit when no services are provided but the organization wishes to encourage the religious activity of the recipients. If the recipients are in need of financial help would that make a difference?

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?

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.

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