The Bookkeeping with a Purpose Podcast- Bookkeeping, Christian Entrepreneur, Church finances, Clergy Taxes, Minister payroll, Biblical mindset,
Ep 28 ~ Helping Those in Need with Intentional Benevolence Giving
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Benevolence Funds, specifically, how do you handle them when collecting for a specific person in need will be discussed in today's episode.
The IRS has set guidelines regarding this situation and we will cover those today including Revenue Ruling 62-113.
We discussed the IRS cap on benevolence being given before it becomes taxable to the receiver in 2023.
We also touched upon the fact that ANY benevolence given to employees or members of the employees family is not considered true benevolence and IS reported as taxable income.
Another point we covered was making sure that your benevolence procedures are followed in compliance with your official Benevolence policy.
Additionally, we verified that donations earmarked for an individual are NOT tax deductible to the donor UNLESS there is an understanding that all donations received will be used by the church in a manner that is consistent with their purpose and mission and may be used for a different purpose should the church decide. The church must retain total control of how the funds are spent, regardless of the donor's request.Take a listen to learn all the details! xo, Michelle Next Steps: Grab Your Freebies:
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