Increase Your Tax Deductions, Don’t Give Cash at Church
January 15, 2007
The Pension Protection Act of 2006 gives the IRS the authority to disallow deductions of undocumented cash gifts to charities, including church offerings. If you put cash into the collection plate you can no longer write it off on your taxes.
Document Your Donations
Instead of putting dollars or coins into the offering plate, write a check instead. What’s the difference? The new law requires donations to be documented as this article describes:
“Individuals must show a receipt from the charity, a canceled check, or credit card statement to prove their donation. No tax deduction will be allowed if the taxpayer cannot provide any supporting documentation.”
Be a Good Steward
Many religions emphasis the importance of being a good steward with your money. If you can reduce your tax burden by documenting and writing off your donations, you’ll have more money left over to live your life and to donate to your church!
Most active churchgoers, at least in the Catholic church, give money in envelopes they receive from the church. These envelopes are used by the church to track attendance (there’s religious and financial reasons behind it), but also to issue a receipt at year-end to the giver.
If you don’t use envelopes, then yes, write a check.
cleverdude, thanks for the heads up. I didn’t know that some churches took attendance. I hope mine doesn’t track whether I get there on time because I’d have a lot of black marks
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