Believers’ Baptist Church is a qualified charitable organization exempt from Federal Income Taxes under IRC Sec. 501 (c)(3). Cash contributions to the church are deductible by donors under the current provisions of the Internal Revenue Code.
Undesignated gifts are those gifts given without stipulation by the donor. These gifts comprise the majority of the church’s total receipts. They are relied upon to fund the budget ministries and programs of the church.
Personal Services donated
The value of personal services donated is not deductible as a charitable contribution. The church relies heavily on volunteers to fulfill its ministry. However, donation of this type will not be reflected on the individual’s record of contribution. Unreimbursed out of pocket expenses incurred on behalf of services donated are deductible on the individual tax return. Travel and transportation expenses are deductible, on the individual’s tax return, to the extent no personal pleasure or recreation was received. These expenses will not be reflected on the individual’s record of contribution.
Receipt of Benefit by Donor
Any benefit or premium received by a donor in exchange for a contribution reduces the amount of the deduction of the contribution. In the event of such a contribution, where a benefit was received, the church will inform the donor of the estimated value of the goods or services received by the donor. If the amount of the contribution exceeds the value of the benefit received, the donor may deduct the amount over the value of the benefit as a charitable contribution.
The church will accept most types of non-cash gifts, provided the gift is determined to be related to the purpose of the church and in the church’s best interest. All non-cash gifts will be reviewed and approved by the church. The estimated fair value of the gift will not be reflected on the letter or the donor’s record of contribution. It is the donor’s responsibility to determine the fair market value of the gift.
Donation of the Use of Property
Use of property cannot be claimed as a charitable contribution. The church may determine to accept the use of property in such cases where the donor understands no deduction from the contribution is allowed.
The church will accept designated gifts if they are specified for an approved project, ministry, or program administered by the church. Gifts to ministries or programs that are not approved or administered by the church will be held until a decision is made as to whether the church can provide the ministry and administer the funds. If the ministry or need cannot be handled the gift will be returned to the donor.
Gift to Individuals
Gifts designated to individuals or groups of individuals do not qualify as charitable contributions. Such gifts donated to the church will not be reflected on the donor’s record of contributions. One exception will be gifts by the church benevolence committee. In this case, the committee decides the beneficiaries of the designations to benevolence fund. These gifts will be acknowledged on the donor’s record of contribution.
Substantiation of Contribution
The church will provide, at least annually, to donors, a record of cash contributions received in accordance with rules and regulation required by the IRS. Non-cash gifts will be acknowledged by letter as described above in compliance with IRS rules and regulations.
Year of Contribution
All contributions must be received by December 31 to be included on the donor’s record of contribution. If mailed, the gift must reflect a postmark no later than December 31.
The church respects the donor’s decision to give as led by the Lord. The above policies are meant to provide guidance to the donor and the church body as well as comply with tax laws. The church reserves the right to refuse contributions that are not related to primary purpose of the church, not in the best interest of the church, or those not qualified for tax purposes.