A chruch organizes and sanctions a trip for members to Nicaragua(sp?) to help a missionary in that country build an orphanage. Members who go pay their own arifare and related travel, buy medicines to take with them for the kids, buy building supplies for cash while there. They camp and eat at the building site. In the past I've deducted them as charitable cash contributions since they are out of pocket expenses on behalf of the charity. This treatment seems to conflict with the over $250 substantiation rules since there is no statement from the charity or a bank record with the charity's name on it.
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John -
Church and charity
The church needs to handle it differently now. The church I'm familiar with has donations made directly to the church designated for that trip, not specified for anyone person that is making the journey. All the money is pooled and then expenses paid out for those who make the trip. The church then issues a donation letter to anyone contributing, including the ones who go on the trip."A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain -
Pub 526, pp. 18-19: Out of pocket expenses in rendering services to a qualified organization. Your acknowledgment requirements are detailed there. Basically: Have adequate records to prove expense amounts; get a statement from organization containing: Description of services provided, statement of any reimbursements with description and value, and statement of intangible religious benefits received.Comment
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not deductible
>>Have adequate records to prove expense amounts<<
Also document who the expenses were incurred for. In the original post, it would appear that the volunteer service benefited the orphanage instead of the church. Donations to foreign charities are not deductible.Comment
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