:: If contributions to the church are designated by the donor for a particular individual, they will be treated, in effect, as being gifts to the designated individual and will not be treated as a tax-deductible contribution. If the donor’s intention or understanding is that the contribution may be used ONLY by the designated individual, such a contribution will not be treated as tax deductible. This money will not be reported as tax-deductible church income.
:: However, where it is established that a gift is intended by a donor for the use of the church and not as a gift to an individual, a tax deduction will be allowed. The test (according to Law and the Church, p.362) is whether the church board has full and independent control of the donated funds, and discretion as to their use, so as to ensure that they will be used to carry out its functions and purposes. Accordingly, a designated contribution may be considered deductible only if given to the church “with no strings attached.” However, a donor may request that consideration be given to a particular individual. The board will approve the disbursement of designated contributions.
:: The Administrator will attempt to notify all donors of designated gifts of this policy before processing their contribution. If it is determined that we cannot honor the donor intent and at the same time maintain independent board control, then the contribution will be returned to the donor.
:: From time to time, the board may determine to solicit contributions for a project, a ministry, or an individual (such as a short-term missionary). This must be determined and announced by the board prior to any contributions being given or collected, and it must support the overall ministry and objective of the church as expressed in the 501(3)c non-profit IRS status. If the above requirements are met, the contributions will be treated as tax deductible.
:: When an individual contributes goods, a letter may be sent to them stating that they donated said items and received no goods or services in return. The church cannot place a value on said items and no contribution credit in addition to the letter will be given. The contributor, himself, may place a value on said items on his tax return and treat them as tax deductible, if desired.