Church receives a stained glass window from a member. CHurch gave statement acknowledging gift with date, FMV, but no statement saying "Only intangible religious benefits were received by the donor". The info I have says this is necessary for cash contributions over $250 per day. Does this need to be on this statement also? Is it our responsiblity to tell churches how to do their statements? So many financial secretarys are just volunteer people.
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I believe that
the statement is necessary unless you personally want to pay the additional tax, interest, and penalty for your client in addition to paying some penalties for yourself in the event of an audit. I am sure some people on this board would write the necessary language on a piece of scrap paper and hand it to the client but I would put it in a letter on my letterhead addressed to someone at the Church and let my client deliver it. I would not charge them for indicating the language necessary but I would indicate the fee I would charge for preparing all their receipts. -
You're right in that many churches don't know the requirements. I had one audit where the church I talked to said 'oh we used to have that on our reciepts, but I changed it to make it friendlier'!. Its back on there. I had another audit where the client's Workplace for Giving payroll deduction was disallowed because the 'no goods or services' line was missing from the pledge card reciept. It was a payroll deduction for chrissake! This was a huge Fortune 500 company too. Either have the client instruct the church or ask if you as the preparer do so. The church doesn't want to see it members lose audits..it cuts down on the big contributions!Comment
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Joanmcq your post reminded me of
IRS notice 2008-16
This is related to organizations like United Way that receive dobnations through payroll witholding.
"A deduction for a lump-sum contribution made in taxable years beginning after August 17, 2006, will not be allowed unless the recordkeeping requirements of § 170(f)(17) are met. In the case of a lump-sum contribution made through the CFC or a similar program, an organization described in § 170(c), or an organization described in 5 CFR 950.105 (a PCFO for purposes of the CFC) and acting in that capacity, that receives a payment made as a contribution may be treated as a donee described in § 170(c) for purposes of § 170(f)(17) (and not solely for purposes of § 170(f)(8)) even if the organization (pursuant to the donor’s instructions or otherwise) distributes the amount received to one or more organizations described in § 170(c). For purposes of § 170(f)(17), a written communication from the PCFO for purposes of the CFC (and acting in that capacity) or a similar organization, must include the name of the donee organization that is the ultimate recipient of the charitable contribution (i.e., the one or more organizations described in § 170(c) to which the PCFO for purposes of the CFC (or the similar organization) distributes the amount received). "
Another PITA.Comment
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