Cash into weekly collection plate no receipts?

[AZ-Tax]

How much, if any, amout do you allow your clients to deduct? My client has no receipts but told me he noted the amount on his calendar each time he donated cash into his churches collection plate.

[Jiggers]

How much, if any, amout do you allow your clients to deduct? My client has no receipts but told me he noted the amount on his calendar each time he donated cash into his churches collection plate.

No deduction for this.

[New York Enrolled Agent]

How much, if any, amout do you allow your clients to deduct? My client has no receipts but told me he noted the amount on his calendar each time he donated cash into his churches collection plate.

Jiggers is right on. It's not what the preparer allows - it's what the IRC allows.

§170(f)(17)Recordkeeping
No deduction shall be allowed under subsection (a) for any contribution of a cash, check, or other monetary gift unless the donor maintains as a record of such contribution a bank record or a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution.

[oceanlovin'ea]

same issue

Had a new client that came in last week. All his contributions are in cash. He said "Have you ever been to the Catholic church? They pass that dish by you twice each time you go. You have to put something in it. You can write a check every time."

Told him that IRS now says you have to have receipts, either by your check or a letter from the church.

He understood but doesn't know how he can change it.

Linda, EA

[erchess]

TY for this thread

I had forgotten that in some circumstances a bank record of the check or credit card usage would be ok instead of a receipt. Am I right in thinking that if $250 or more is given on any one occasion the receipt is required?

[dan doshan]

Yes, without looking up to double check, I believe any donation of 250 or more has to be documented including a written statement that no services were provided.

[dyne]

Many years ago IRS would allow ONLY $78 for contributions which could not be verified.
NOW they will allow NOTHING!

[FEDUKE404]

Gotta have a receipt...

Had a new client that came in last week. All his contributions are in cash. He said "Have you ever been to the Catholic church? They pass that dish by you twice each time you go. You have to put something in it. You can write a check every time."

Told him that IRS now says you have to have receipts, either by your check or a letter from the church.

He understood but doesn't know how he can change it.

Linda, EA

Disclaimer: I am not a member of a Catholic church.

However, at my church it is not unusual at all for the collection plate to pass several rows with nary a deposit. (The church is surviving quite well financially.) Virtually everyone now uses a pledge payment or similar, to a large part "knowing" the IRS rules. Absent that, a few still use the antiquated "personalized envelopes" method. Either way, the church members do receive the proper annual notice of donations which will pass any IRS muster. My normal approach is to send quarterly pledge payments via echecks. Works like a top! I just quietly pass the collection plate to the next member of the congregation.

Regardless of what the client said about his own church's methods, there certainly is a way to resolve things. But regularly tossing unverified amounts of cash into the plate on an irregular basis is just no longer within that group.

FE

[Jiggers]

Jiggers is right on. It's not what the preparer allows - it's what the IRC allows.

§170(f)(17)Recordkeeping
No deduction shall be allowed under subsection (a) for any contribution of a cash, check, or other monetary gift unless the donor maintains as a record of such contribution a bank record or a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution.

No matter what church, you must have this substantiation.

The statements that most churches issue do not meet the requirement of ".....no goods or services....." on the annual statement.

Most of those on street corners and bell ringers at Christmas will give you a receipt if you ask. But for a $1.00, or pocket change...............

[Gary2]

No matter what church, you must have this substantiation.

The statements that most churches issue do not meet the requirement of ".....no goods or services....." on the annual statement.

I can't say that I've always looked, but since seeing some discussions earlier this year, I've been looking now. I have yet to see a church statement (or any charity statement) that didn't include the "no goods ..." disclaimer.

I'm thinking that it's too bad that Judaism doesn't believe in proselytizing. We could put up signs "No donations requested or accepted on the Sabbath. It's customary to leave your cash at home."

[FEDUKE404]

Most receipts are valid for IRS

No matter what church, you must have this substantiation.

The statements that most churches issue do not meet the requirement of ".....no goods or services....." on the annual statement.

Most of those on street corners and bell ringers at Christmas will give you a receipt if you ask. But for a $1.00, or pocket change...............

Mildly disagree with your assessment. Virtually every church donation statement (either interim or annual summary) that I have recently encountered has shown the required IRS verbiage. Even the "country churches" are getting on the bandwagon. I see a lot of those "small" receipts for things such as single memorial gifts (in the normal $25 - $100 range) to a church where the client is not even a member.

Maybe "the word" (of the IRS type!) is getting around.

FE

[JenMO]

Contributions over $250 need receipt from church and statement to "no goods....". One statement I have seen has 2011 on the top, but contributions are written in as 1st sunday in April, second Sunday in April. No specific day. There thinking as they can copy the same statement every year and just change the date. Will this work?

[taxea]

Recommend to your client that he donate into the basket by check if he wants to take the deduction because if he is only giving the money to get the tax write off and not out of the kindness of his heart there is no tax deduction without a receipt or document to prove the deduction. The days of no record of donation so we put just under the 250 limit are gone.

[Burke]

Contributions over $250 need receipt from church and statement to "no goods....". One statement I have seen has 2011 on the top, but contributions are written in as 1st sunday in April, second Sunday in April. No specific day. There thinking as they can copy the same statement every year and just change the date. Will this work?

I don't see why not. The receipt can show the entire year's deductions in total (one lump sum) and does not have to be broken down by specific date contributed.

[LCP]

Jiggers is right on. It's not what the preparer allows - it's what the IRC allows.

§170(f)(17)Recordkeeping
No deduction shall be allowed under subsection (a) for any contribution of a cash, check, or other monetary gift unless the donor maintains as a record of such contribution a bank record or a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution.

Where is "bank record" defined?