Online donations to ward

Discuss questions around local unit policies for budgeting, reconciling, etc. This forum should not contain specific financial or membership information.
jimpacker
New Member
Posts: 6
Joined: Tue Aug 06, 2013 7:31 am

Re: Online donations to ward

Post by jimpacker »

Seems like a lot of people don't realize that "donations" to youth camps are not deductible. In the past every option on the online donation "slip" was deductible....but the youth camp donations (recently added to the online donation "slip") are not and somehow people are not understanding that distinction.
If people are wanting to make a QCD payment or DAF donation and have it credited to a youth camp fund, they are attempting to do something that would jeopardize the church's tax exempt status. While they can send money from an IRA, they cannot do so legally and properly without jeopardizing church tax exempt status if it goes to a youth camp.
I have made DAF (donor advised fund) donations for tithing, Fast Offerings, and even missionary funds etc - all things that are tax deductible items....but youth camp "donations" are non deductible items, so I pay those from my bank account. If people would go look through prior tax year statements from the church they will see none of those youth camp donations listed....again because they are not tax deductible. The IRS says that the youth are receiving something for the donation (ie food and a place to stay during the camp) so they are not tax deductible donations.
It may be easier for people to understand why they cannot make a QCD or DAF donation to a ward budget account for youth camps if they know and understand that youth camp money is not tax deductible. Please understand that distinction....until the IRS changes it rules...
:)

Return to “Local Unit Finance”