Are church donations tax-deductible?
There is perhaps no greater gift than giving. Church donations and religious giving totaled more than $592.5 billion in the US in 2024, and many of these were through online giving and recurring donations.
Church donations are crucial as they help support community work, programs, and the daily needs of the congregation. Yet, before you can donate yourself or set up a fundraiser, you need to know the answer to one important question: ‘Are church donations tax-deductible?’
We’ve put together this handy guide to explain how these gifts work at tax time. You’ll also learn which types of church donations are tax-deductible, get a better understanding of IRS criteria, and discover other relevant details.
If you know what makes a church donation tax-deductible, you can benefit from being generous while helping your gift go further.
What is a tax-deductible donation?
A tax-deductible donation is a gift. Usually, you give this gift to approved charitable organizations. Many people consider giving to churches because this lets them show their support for their faith and congregation, while also potentially receiving tax benefits.
Often, this type of donation can reduce your taxable income. Most churches are considered charitable organizations, so donations to them can count as tax-deductible.
However, tax-deductible church donations come with specific rules that you’ll need to follow. Once you learn more about these rules and how to donate to a church, you’ll have a better understanding of how to plan your giving throughout the year.
IRS criteria for tax-deductible church donations
The IRS says that for church donations to be tax-deductible, the church must be known as a tax-exempt organization. The good thing is that most churches qualify automatically, but it’s best to confirm this by checking with your church office. Or you can use the online IRS Tax Exempt Organization Search.
The IRS requires that the donation be made directly to the church. If you donate to an individual, even if they’re part of the church, it generally won’t qualify as a deduction. You also need to be donating voluntarily. If you donate because someone told you to or because it’s an expectation, it doesn’t count.
Stick to these rules and you can be confident your contribution meets IRS guidelines and is tax-deductible.
How does tax relief work for church donations?
There’s no two ways about it: churches and other religious organizations help strengthen community bonds and bring people together. In fact, Pew Research indicates that 80% of people think this way. With this in mind, it’s perhaps no surprise that church donations are slightly up, according to many US churches. But are these people benefiting from their good-heartedness? For the most part, yes – through tax relief.
Tax relief occurs when you claim your church donations on your federal return. However, for you to claim, the church must be a recognized 501(c)(3) tax-exempt organization. If it isn’t, it typically won’t qualify for tax deductions. Luckily, donors can easily verify a church’s tax status using the tools mentioned above.
With tax relief, there are two options. You can choose to itemize or use the standard deduction method. If your giving is steady over the year, the former might be the better choice. To itemize, simply list each deductible expense, including donations.
If you do itemize, add up your eligible church donations for the year and report that. But if you find itemization too tricky, you can use the standard deduction way of doing things. With the standard deduction method, you won’t list donations as separate line items.
Since life can get busy and time can be scarce, you ask for a year-end summary from your church to confirm numbers. You could also use your bank statements or receipts. To save you time and potential headaches down the line, it’s best to keep these documents with your tax files.
Find out more about your options in our useful guide to getting financial assistance for church donations.
Types of donations a church can receive
There are many types of donations you can give to a church to show your support. However, the kind of gift you give can change how you document it. To give you a better idea of how you can donate while still potentially enjoying tax benefits, we’ve shared a few options below:
Cash donations
Checks, card payments, and cash all count as cash payments. Usually, these donations cover daily operations and church events. Churches you donate money to can generally provide you with receipts or year-end summaries.
Online and recurring giving
It’s the modern age, and many churches are adapting to survive. Nowadays, lots of churches use websites and apps to accept donations. You can use these to gift when you can or set up recurring payments. When you use these platforms, you should get automatic receipts that you can keep.
Non-cash donations
If you have old items lying around, consider donating them. Usually, chairs, instruments, computers, and other supplies count as non-cash donations. When you gift these items, their value will be based on fair market value. This means the ‘price’ denoted is what it would sell for today. Usually, with these, there is no receipt, but you can keep a simple note about the item and its condition.
Household items and food
No one should ever have to go hungry. To help stop that from happening, churches often run pantries and meal programs. For this, they need groceries and essentials. You can donate these items and help keep hunger at bay for those in need. These items you donate also have their value determined by fair market value. To keep a record of these donations, take pictures and keep receipts.
Services and volunteer costs
Although undoubtedly valuable, you can’t deduct time. But there are out-of-pocket costs associated with your time that you can deduct. These can include miles driven for service or supplies purchased, provided the event qualifies. We recommend saving these receipts for review when you file your taxes.
Stock and investment donations
You may not always have the money up front to donate, but this doesn’t mean you can’t still give. If you have them, you can gift stocks or mutual funds to a church. These can help support a church without changing your monthly cash flow. However, not all churches accept this type of donation, so be sure to check with the church first. Also, keep records of any donations.
Crowdfunding contributions
Some IRS-compliant churches use crowdfunding platforms like GoFundMe to raise money for projects. You can donate to these projects and have your donation be tax deductible if the church is the official recipient. Just remember to keep records of your donations and verify the campaign particulars.
Limits, exceptions, and documentation
As with most things in life, there are a few caveats to donating to churches. These come in the form of limits, exceptions, and necessary documentation if you choose to itemize.
For example, the general limit for cash gifts to churches is up to 60% of your adjusted gross income (AGI) annually.
Then, if you donate assets such as stock or property, additional limits and forms may apply. Luckily, there are trustworthy tax guides available that explain how these limits work.
Here’s a closer look at what else you may need to know about church donation rules:
- Donations of $250 or more: When you donate more than $250, bank records alone are not enough. You need a written acknowledgement from the church. This documentation must list the amount of your donation and whether you got anything in return.
- Non-cash over $500: If you donate more than $500 in items in a calendar year, you’ll need to file IRS Form 8283 with your return. On this form, you’ll list the items and basic details.
- Non-cash donations over $5,000: You’ll need a qualified appraisal and to fill out Form 8283 Section B when you donate more than $5,000 to a church in a year. This appraisal should be kept with your other tax records.
Another important rule to remember is that if you receive a benefit from a donation, it must be subtracted. This is known as the “quid pro quo” $75 rule.
For example, if you receive merchandise, event tickets, meals, or parking worth $75 or more, deduct it from what you donated. Usually, the church will provide you with a written disclosure statement that outlines the value of any items they have given you. You can use this to work out what to minus.
Then there are the year-end timing rules. To count your donations for the tax year, you should record them before December 31st. You will also need to have received the church’s acknowledgment letter for donations before filing your taxes.
Make your church donation go further
We hope this church donations tax guide has been helpful to you. After all, you now know how to keep good records and figure out when receipts are necessary. You also understand the differences between cash and non-cash gifts. Knowing all this will ensure your generosity counts the way you intended.
When you’re ready, GoFundMe is a great place to start if you want to begin donating to churches and faith-based projects. You can support a project on a one-off basis or give monthly to churches that are classified as 501(c)(3) tax-exempt organizations. When you do, and you itemize these, they can be tax-deductible.
But perhaps most importantly, tax benefits aside, giving through GoFundMe makes it easier to stay connected to your cause. You can follow updates, share encouragement, and invite others to join you in making a meaningful difference.
Tax-deductible church donations: FAQs
Are all church donations tax-deductible?
Most are. If a church is recognized as tax-exempt, your donations will usually qualify as tax-deductible. All you need to do is ensure that your gift goes directly to the church and not to an individual. Additionally, it should be given voluntarily.
What proof is needed to claim back tax on church donations?
You need to keep your bank statements, financial records, receipts, and written acknowledgments from the church. You’ll need the church’s acknowledgement for any donation over $250. You’ll also need to keep the IRS Form 8283 on record for non-cash donations of more than $500.
If I volunteer at church, does that count as a charitable donation?
Unfortunately, your time is not tax-deductible. But some associated costs are! You may be able to deduct out-of-pocket expenses, such as mileage or supplies, if they qualify.
How do I verify my church’s 501(c)(3) status?
You can simply ask your church office if they verify. Alternatively, you can search the church’s name on the IRS Tax-Exempt Organization Search tool online. Both options are quick and easy and can save you trouble during tax season.