Year-End Contributions – What you need to know
To deduct any charitable donation of money on your tax return, regardless of amount, the IRS requires that a donor have either a bank record or written communication from the charity. Bank records include canceled checks, bank or credit union statements, and credit card statements. For any single contribution over $250, the donor must have written acknowledgement from the charity. CFC will assist those who have donated a total of $200 or more to the church during 2020 by mailing contribution statements in January 2021. Please do not file your income taxes until you have received this receipt. If you have given less than $200, your bank records are sufficient for the IRS. However, if you would still like a statement from CFC, you may call and request one be sent. CFC posts all contributions to individual accounts (excluding cash contributions where the donor is unknown) and this information can be available to you at any time.
Year of deductibility of year-end contributions
The IRS states that contributions are deductible in the year made. Checks will count as a 2020 contribution as long as they are mailed in 2020 and clear shortly thereafter. Donations made online or charged to a credit card will count as a 2020 contribution as long as they are posted in 2020. At CFC we will follow these guidelines as we want to have full integrity regarding the timeliness and cut-off of year-end contributions.
- A check written and/or dated in December 2020 but deposited in the church offering in January 2021 will be a year 2021 contribution.
- A check written and postmarked in December 2020 is a year 2020 contribution, even if it’s not received until January 2021.
- A check written in December 2020 but not postmarked until January 2021 is a year 2021 contribution.
- Credit card contributions that are posted before the end of 2020 count for 2020, even if the credit card bill isn’t paid until 2021.
Our Elders have established four approved funds to which you can designate your giving. They are the general fund, missions fund, building fund, and benevolence fund. Donations made to these funds are tax-deductible. According to IRS guidelines, such gifts remain under the jurisdiction and control of CFC.
Checks received by Christian Fellowship Church as payments where goods or services are received by the donor are not contributions and not tax deductible per the IRS. Examples are: preschool tuition, camps and retreats, curriculum fees for classes, purchase of shirts, bookstore purchases, coffee shop purchases, concert tickets, etc.
If you have any questions regarding these issues, please feel free to contact our Executive Pastor, Mike Deeg, at (812) 867-6464.