by Lynda
(Iowa)
A member of our church has cancer and the community is putting on a benefit to help assist with medical costs. The committee putting on the event is requesting to use our 501(c) 3 tax id, as some local businesses will not donate unless they have this.
Is this a good idea? What additional paperwork is involved for us as a church. To vision how this would work all I can see is that the business will donate money to the church, the church would have to issue a receipt, and the church would have to turn around and give back to the member?
uncomfortable feeling participating in this.
Please advise.
thanks.
Lynda
2Comments
Directed giving not allowed
DD Fry
Generally speaking, the IRS does not allow a tax deduction for directed giving - that is, money (or other items) given to a charitable organization for the benefit of a specific person. A church cannot issue a tax-deductible receipt for anything given for someone specific. To be tax-deductible, a giver must surrender all rights to the property given to the organization, who may then do as they see fit with the donation. Literally, the gift must be given with no strings attached.
If someone wants your number for tax receipts, run - do not walk - in the opposite direction.
They should be getting their own 501-3c number to accept donations.
If someone wants your number for tax receipts, run - do not walk - in the opposite direction.
They should be getting their own 501-3c number to accept donations.
Thanks
AAnonymous
You confirmed what I thought. Thanks for your help.