“A Secret Sauce” for Increasing Planned Gifts
This article addresses “a secret sauce” and not “the secret sauce” because there are many ways to help increase planned gifts. Before we discuss a secret sauce, an explanation of planned giving needs to be provided. Planned giving includes any gifts beyond cash gifts that require some planning.
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2021 Year-End Giving Letter Template
ECFA has created a free sample letter to share with donors regarding special charitable giving incentives in the tax law scheduled to expire on December 31, 2021
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4 Keys for a Church to Properly Handle Designated Gifts
Almost every church receives some designated gifts each year. The gifts are “restricted” for accounting purposes, but churches often refer to them as “designated.”
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7 Lessons My Father Taught Me About Fundraising
Dr. Barry Corey, President of Biola University, thoughtfully shares characteristics of Godly development that were modeled by his father. His thoughtful comments will encourage anyone involved in resource development.
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Are Voluntary Donations to Ministers Gifts or Taxable Income?
Churches should be aware of a recent Tax Court ruling on voluntary donations to ministers.
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Benevolence Application – Financial Assessment Sheet
Sample benevolence form that may be used by a ministry to evaluate benevolence applicants
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Bitcoin Basics for NFPs: Accepting and Valuing Crypto Asset Gifts
As crypto-assets (crypto) continue to make the headlines and push into the mainstream of finance, more nonprofits are seeking solutions for donations of these assets and asking questions about accounting implications. This article outlines the basics for accepting and valuing donations of bitcoin and other crypto and highlights some important considerations for working with third-party service providers to receive, hold, and liquidate these assets.
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Capital Campaigns
Capital campaigns are used to raise funds for buildings, endowments, scholarships, and other specific purposes.
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Charging an Overhead Assessment against Restricted Donations
Highlights the key issues relating to the determination of overhead rates to be applied to gifts, accounting for overhead charges, communication of overhead charges to givers, and much more
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Charitable Acknowledgments Provided to Someone Other than the Giver
Outlines issues to consider when a giver requests that a charitable receipt be provided to someone else
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Charitable Gift Acknowledgments for Donations
Outlines IRS requirements for acknowledgments for contributions received by a ministry
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Charitable Gift Percentage Limitations
Charitable deductions for a particular tax year are limited by certain percentages of an individual’s adjusted gross income (AGI).
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Charity Auction Implications
An overview of the tax rules relating to the donation of items to be auctioned and the items purchased at an auction
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Conduit Gift
A nondeductible transfer of funds to a charity that is not intended to benefit the charity, and over which the charity does not have adequate discretion and control
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Contribution
An unconditional transfer of cash or other assets to an entity or a settlement of cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner.
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Contributions for Disasters
Accountability for funds received and expended for disaster relief should be based on certain best practices.
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Contributions of Motor Vehicles, Boats, and Airplanes
Congress has provided special rules related to the contributions of motor vehicles, boats and airplanes. The gifts of these items may not occur frequently for you but when one of these donations is received, you need to be prepared to properly apply the rules in compliance with the law.
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Digital Gifts to Churches—Developing Controls to Avoid Fraud
In the past few decades, “We’ve gone from dial-up Internet access in our basements to high-speed connections in our pockets,” says Steve Hewitt, editor of Christian Computing Magazine.
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Distributions from 403(b) Plans
Addresses the permissible distributions from 403(b) plans and the tax consequences of non-qualified distributions
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Does Social Media Fundraising Work?
Is social media a useful tool to raise ministry funds? ECFA's recent survey of more than 700 Christ-centered nonprofits and churches indicated widespread affirmation that social media works.
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Donations - A Church's Responsibility to Control
Discusses how a church must exercise full administrative control over donated funds to ensure that they fulfill exempt purposes and programs
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Explicit Gift Restriction
An explicit gift restriction occurs when a donor sends a letter, indicates a restriction on a response form, or provides other specific communication to the church identifying a contribution as restricted in terms of purpose or time.
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Gift Acceptance Guidelines for Churches
Guidelines for a church to follow when determining what gifts should be accepted from donors
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Gifts Designated for a Pastor
The IRS clarified that to deduct a contribution to help pay a minister's health expenses, the donor’s intent in making the payment must have been to benefit the church and not an individual pastor, even if the donor simply desired to "bless" the pastor.
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Gifts to Domestic Organizations for Foreign Use
Charitable deductions to U.S. charities, including churches, with the gift restricted for a foreign charity are only permitted in certain situations.
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Gifts to Help Church Participants
When an individual ultimately benefits in some way from a gift, a variety of tax issues may arise. Churches must be clear in their communication and control over contributions in order to protect their donors’ tax deductions.
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Giver Restrictions or Giver Preferences
The distinction between a giver's restriction and giver's preference can make the difference between the giver's eligibility for a charitable tax deduction and no tax deduction.
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Giver-Imposed Condition
A giver stipulation that specifies a future and uncertain event whose occurrence or failure to occur gives the promisor a right-of-return of assets he or she has transferred, or releases the promisor from its obligation to transfer assets.
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Giver-Imposed Restriction
A giver-imposed stipulation that specifies a use for the contributed asset that is more specific than the broad limits imposed by the church’s purpose and nature.
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Guidelines for Handling Funds Raised for Disasters
Contains guidelines that churches should consider when raising disaster-related funds
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Implicit Gift Restriction
An implicit gift restriction occurs when there are certain circumstances surrounding a gift that makes the giver’s restriction clear even though there is no explicit gift restriction.
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IRA Charitable Distribution Opportunities for Churches
The tax law provides new charitable giving opportunities through IRA distributions for church members.
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It’s More Than Contribution Receipts
Outlines ways that nonprofits can be financially accountable to donors beyond providing a contribution receipt
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Moving the Needle with Special Gifts for Your Church
Special gifts or planned gifts will continue to be vital in the future as cash giving trends are in a downwards trajectory in many churches and other ministries.
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National Worker (non-U.S. worker)
A citizen, born in or naturalized in the country where a church conducts missionary activity.
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Needy and Distressed Test
This test should include a set of criteria by which a church can objectively make distributions to individuals who are financially or otherwise distressed.
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Personal Gifts
A transfer of money or other property from one individual to another individual, voluntarily, without any obligation nor a consideration for services rendered.
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Preferenced Gift
A preference indicated by a giver expressing the giver’s wishes, desires, or advice on how or when the gift will be used but is not restricted for a specific individual.
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Prohibiting the Acceptance of Restricted Gifts
A church's policy to prohibit the acceptance of restricted gifts only has a limited effect.
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Project Reporting to Givers - Church
A donor has requested a report on how her gift was used for a certain project. What is appropriate for our church to provide to this donor?
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Quid Pro Quo Disclosure and Acknowledgment Requirements
Discusses when to disclose, how to disclose and how to calculate quid pro quo contribution
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Sample Annual Year-End Letter to Volunteers Related to Deducting Out-of-Pocket Costs
Sample Annual Year-End Letter to Volunteers Related to Deducting Out-of-Pocket Costs
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Sample Benevolence Policy
Sample benevolence policy that may be used as a guideline by a nonprofit ministry designing its own benevolence policy
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Sample Communication from a Ministry to Its Deputized Workers
Communicating with your own deputized workers is just as important as communicating to donors.
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Sample Deputized Support-Raising Gift Acknowledgement Version A
When acknowledging a gift for deputized fundraising support, it is critical to include language that explains the ministry’s discretion and control over the gift
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Sample Deputized Support-Raising Gift Response Form Version A
Communication up front to donors on how their gift will be used is just as important as providing charitable acknowledgements after the gift is received.
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Sample Deputized Support-Raising Letter Version A
The following sample letter provides helpful language that your organization can share with deputized workers.
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Sample Deputized Worker Policy
Creating a sound deputized worker policy helps communicate the expectations both of the ministry and the deputized worker.
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Sample Short-Term Mission Trip and Mission Field Visit Assessment Policy
Many churches sponsor short-term mission trips and encourage their constituents to participate in the trips. Additionally, ministries may send representatives to a mission field to assess certain field-specific issues before a ministry begins to support a particular field or as a qualifying event contingent on a church’s continuing to support a field. This document includes sample language for your church’s policy.
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Scrip Sales by a Church
Scrip, in the form of a gift certificate or a gift card, is sometimes purchased by a church from a merchant at a discount and may create special tax considerations.
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Should You Accept Cryptocurrency Donations?
With the rapid growth of cryptocurrency, should your church or ministry start accepting cryptocurrency donations?
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Temporarily Restricted Net Assets
The part of net assets for a ministry that is temporarily restricted by donor-imposed stipulations.
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The 7 Deadly Sins of Year-End Gift Receipts
This article written by Michael Martin for The Church Network Insight magazine will help church administrators understand the importance of ensuring that gift receipts provided by the church meet the requirements of federal tax law for those who will use the receipts as substantiation when filing their returns and claiming a charitable deduction.
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Underfunded and Overfunded Projects
Discusses the appropriate action when a ministry project is either underfunded or overfunded
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Variance Power
A variance power is the authority granted to a church by a court with respect to the use of a giver-restricted gift.
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