Using Church TAX ID for cancer benefit

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

Comments for Using Church TAX ID for cancer benefit

Click here to add your own comments

Jun 28, 2015
Directed giving not allowed
by: D 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.

Jun 30, 2015
Thanks
by: Anonymous

You confirmed what I thought. Thanks for your help.

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 .

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)



Share this page:
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.