Christian ministries are thankful for all the contributions they receive. Most commonly, people give their tithes and offerings in the form of cash, check, or electronic contribution. Sometimes, however, people donate physical items.
It is not uncommon for people to donate new computers to the church. Such gifts are considered in-kind donations. Churches generally acknowledge all such contributions, but the IRS requires formal acknowledgment if the value of the donated item exceeds $250.
Most churches issue a letter or statement to acknowledge in-kind donations, but these documents must include specific information:
- The church name and address
- The name of the donor
- The date of the contribution
- A detailed, accurate description of the item
- A statement about whether any goods or services were provided in exchange for the donation
Interestingly, though you should provide an accurate description of the donated item, you should not declare its value. For example, you might say “a desktop computer,” but you should not say “a desktop computer worth $1,500.”
Some organizations issue in-kind donation receipts as each gift is given while others wait until the end of the year to provide such statements for the entire year.
Contributions can be confusing. Some people wonder about getting tax-deductible receipts for donating their labor, for receipts for donated items, and for many other things. There is not sufficient space here for answers to all of these questions. If you have questions about the proper way of acknowledging the generous contributions of your supporters, please contact our offices for additional assistance.