Vehicle Loaned for Pastor's Use

by K. Dobbs

We have two members who loaned their vehicle for the pastor's use during a time when he didn't own a car.

They would like to receive a contribution statement for the value of the vehicle use for the week's it was loaned.

The value has been determined by using a well-known car rental company's posted rates for the same vehicles. How do we go about doing this as the amounts, especially weekly, are substantial?

vickey’s reply

You cannot issue them a contribution receipt. Cash or noncash contributions to an individual do not qualify as charitable donations, and the IRS does not allow a tax deduction for them.

According to Keith Hamilton, D.Ed.Min, CFP, “You cannot deduct contributions to specific individuals, including contributions to individuals who are needy or worthy. This includes contributions to a qualified organization like a church if you indicate that your contribution is for a specific person.

Hope this helps,

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Comments for Vehicle Loaned for Pastor's Use

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Nov 28, 2010
Loaned Vehicle
by: Marcus in Texas

Amen to Vickey's reply on this one. The church needs to stay out of this one because it is something that will be strictly between those who are loaning the vehicle and the IRS if those individuals attempt to claim a charitable deduction for loaning the vehicle to the pastor. The church should not become caught in the middle of this one.

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