Church members often contribute monetary donations to their church as a part of tithing and as a way of helping promote the continuance of the church. When donations are made, a church tracks the amounts. Donors need a record of their contributions when completing their federal income taxes. People write off church donations, which often causes their tax liability to decrease. A write-off is only allowed if the person has a written record of the donations.
Follow the tax laws. According to the IRS Publication 1771, in order for people to take a tax deduction for church donations greater than $250, written acknowledgement from the church is required. Because of the law, it is important for churches to properly record all donations they receive.
Create contribution statements using a word processing program. During the year, many churches use a spreadsheet program to record all donations received and who made the contributions. Each week the amounts are added and saved to the spreadsheet. Use the amounts listed in the spreadsheet to prepare contribution statements.
Include the church’s information. A contribution statement must include several important details: the church's name, address and phone number, either included on letterhead or typed into the document; and the time period of the statement. The contribution statement may state “For the year ending Dec. 31, 2010” or “For the Calendar Year of 2010.”
Type the contributor’s name and address. Each person that made donations should receive a statement. Each statement must contain the name of the contributor, his address and the total dollar amount of the contributions.
Include a one- or two-sentence statement regarding the donated funds, which states that the contributor didn't receive anything in return for his donations.
Offer appreciation. Many churches also include a short sentence that thanks the contributor for the donations he made throughout the year. The sentence is not necessary, but is a nice way for a church to say thank you.
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