Many people take making church donations seriously. They make consistent annul, monthly or weekly donations. The church keeps a record of this and will sometimes send them a statement with details of the contributions. Even where the member does not receive a statement, the church will have on record the member’s giving history.
The church will have campaigns from time to time to increase donations or for a special program or event. Cash donations usually go towards the church’s operating expenses, however, sometimes the campaign and resulting contributions are designated towards other specific church functions such the cost of new buildings or the improvement of existing buildings, mission works or a special project.
In-kind campaigns on the other hand are usually geared towards collecting items for things such as Back-to-School, disaster relief for persons affected by floods, hurricane, fire etc. and support for the indigent and shut-in.
Whether the donation is in cash or kind there are some general guidelines in handling church in-kind donations. The church needs to have a system in place to;
- track the contributions in order to know whether or not they have met the targets of say, 1,000 blankets,
- know who to reply to with a note of thanks, and to
- assist members and donors when they are preparing their taxes.
Donation Receipts
The church donation receipt form will have the following information.
- The name of the church
- Name and address of donor
- Date of donation
- Amount of cash donation
- Description of items donated
The receipt can be by way of letter, postcard, email or a pre-printed form. The important thing is the acknowledgement of the gift. Where a letter is done, the above details must be included and the letter must be signed by an authorised church officer.
The church will also prepare a receipt that will be used for tax purposes and information required will be a bit different. The receipt
Remember that donations in cash or kind are what keep most churches in operation and enable them to survive and grow. Individuals provide support for the church and the church in turn gives them receipts that can be used for tax purposes. These contributions are tax-deductible because the church is a non-profit organisation. The donor not only gets a tax benefit but also the human desire to help others is satisfied.
- Must be on the church letter head and include
- Donor’s name
- Address
- Date of Donation
- Donation type: goods, service, check, cash, check or credit card.
This type of receipt is usually for one year’s donations per member and issued by the church by the end of January following. It is quite in order however to request one before the end of the year just be sure to provide the church with details such as the date of the donation and the amount or type.
These measures form part of the church’s Benevolence Policy and provides a practical guide in recording and accounting for cash and in-kind donations.
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