Gifts to churches are tax deductible.
The money you give to a church is tax deductible. However, as is true with all tax returns, these donations can only be counted if you itemize your deductions. Because religious organizations have come under increased scrutiny for violations of the federal ban on charity support of political candidates and causes, you can be reasonably assured that all of your contribution is used for benevolent purposes.
Deduction Category
Churches and religious organizations fall under the Internal Revenue Service's Charitable Contributions category, and donation deductions generally are subject to a limit of 50 percent of your adjusted gross income.
Write a Check
The easiest way to keep track of your offerings to the church is to put a check in the collection plate. Larger churches generally give end-of-the-year, donation statements that verify the amount of money you have given by means of offering envelopes. In fact, the IRS requires charitable organizations to provide a statement to donors who make one-time gifts in excess of $250.
Gifts of Property
You can deduct the fair market value of any property that you donate to a church. Generally, church organizations will provide you a receipt that designates the value of clothing and appliances you give to religious community thrift stores and the like.
Special Offerings
Congregations often ask for special donations to ministries and outreach efforts beyond the local church -- especially for work done by a larger denomination in which they hold membership. It would be easy to overlook these gifts, and they can add up. Be sure to pay with check because your church may not include these in its statement of your offerings to its local funds.
Summation
Taking advantage of the deductions for gifts to the church is an important way for you to direct your money to causes that are in keeping with your own worldview and ethical outlook and, at the same time, be rewarded for such with a reduced tax bill.
Tags: religious organizations, your offerings