Charitable gifts: Are church donations tax deductible?

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Individuals remain a crucial source of philanthropic giving, with 23% of charitable donations going to religious organizations in 2024. Yet many Americans are unclear on this issue and are left wondering, “Are church donations tax deductible?” 

In short, yes—donations to religious organizations, including churches, can be tax deductible. However, there are some rules that must be met for charitable gifts to qualify as a tax benefit. Understanding church tithes and taxes is key for anyone who gives regularly.

In this article, we highlight what you need to know about which charitable donations to churches and other houses of worship are tax deductible so you can make the best decision for your ministry and ensure you understand tax exemption for churches. 

Disclaimer: This article is informational only and is not intended as tax advice. Churches and churchgoers seeking more information should consult a tax professional.

What is a tax-deductible donation?

A tax-deductible donation is a voluntary gift of money or goods to an IRS-recognized, tax-exempt organization, which can reduce your taxable income. Donations to individuals are not tax-deductible, but gifts are tax-exempt for churches. 

Do you have to pay taxes on donations received? To qualify, a charitable donation must be:

• Given to an IRS-recognized charitable organization
• Voluntary, with you receiving nothing in return for the donation
• More than the fair market value if you receive a benefit from the gift, such as a ticket to a church fundraiser or auction

Charitable contributions given to organizations that are registered as a 501(c) (3) charitable organization can qualify for tax deductions. Most organizations will display their status on their website—often in the footer, “About” section, or home page. Still not sure? You can always contact the organization to make sure your gifts are tax-exempt for churches you want to support. You can also consider using the IRS Tax Exempt Organization Tool.  

Additionally, to make the tax deduction, you must itemize your personal tax deductions with proper documentation using the IRS Schedule A instead of taking the standard deduction set by the IRS. That’s why keeping track of your tax-deductible charitable donations is essential. 

Qualifying documentation to prove you made a contribution includes: 

• Credit card statements
• Bank statements
• Receipt that includes information such as the date, amount given, the organization’s Tax ID Number, and the name of the organization

If you make regular contributions through an automatic deduction from your paycheck, you’ll want to keep copies of your W-2 or pay stubs to show the dates and amounts of your donations.

If you made a one-time donation of more than $250, the IRS may require additional documentation, such as a letter of acknowledgment from the nonprofit organization.  

Are tithes tax deductible?

Traditionally, tithing meant giving ten percent of one’s earnings to the Church. Tithing is a way for people to support their church, give back to the community, and practice their faith.

So–are tithes tax deductible? Tithing remains a common practice in many churches and religious organizations but doesn’t necessarily equate to each member giving a tenth of their income. Instead, many churches pass a collection basket or have a tithing box where members can give, or members can make contributions through the church’s website or app.  

For IRS purposes, are tithes tax deductible? Yes, if your religious organization is recognized as a 501(c)(3) charitable organization. Most churches and ministries do qualify, but you’ll want to double-check before filing. Additionally, you’ll need to itemize your deductions and be able to provide receipts or documentation of your tithes as discussed above.

Just because you make a tithe doesn’t mean you have to claim it on your taxes. This is a personal decision that is up to you, and you’re not required by law to claim deductions for your tithes on your taxes. The decision to claim the tax deduction depends on your personal beliefs and your church or church’s policy. 

Limit for charitable donations

Typically, you can deduct up to 60% of your Adjusted Gross Income (AGI) for charitable cash donations or up to 30% for appreciated property donations. There may be other limits depending on the type of contribution and the organization. 

This charitable donation limit applies to all the donations you made throughout the year regardless of how many organizations you gave to. If your donations exceed 60% of your AGI, you will not be able to deduct all of your donations in the current tax year. However, you may be able to carry over the deductions to one of your next five tax returns.  

Explaining IRS rules for church donations

Are church donations tax deductible under IRS rules? Yes—but they must meet specific IRS criteria for tax exemption for churches.

For instance, your church must have an IRS-recognized tax-exemption for churches status for you to claim donations as tax deductions. The qualifications for religious organizations include:

• Operating exclusively for religious, educational, or other charitable purposes
• Ensuring that net earnings do not result in a benefit for a private individual or shareholder
• Not intervening in political campaigns
• Not having a substantial part of the activity attempting to influence legislation
• The activities and purposes not being illegal or violating fundamental public policy

If a church meets these requirements, they are often automatically considered tax-exempt. However, many churches still formally apply to ensure donations qualify as tax-deductible contributions. Churches that are part of larger parent organizations with tax-exempt status are also considered to have a tax-exempt status.

Understanding church tithes and taxes helps both donors and ministries remain compliant and confident when claiming deductions.

Tax deductible vs non-deductible

Another consideration when asking are donations to churches tax deductible is ensuring the contribution is eligible to be included as a tax deduction. 

Typically, the types of donations eligible for a tax deduction include:

• Cash or money: Monetary contributions can be deducted from your taxes if you have a record of the donation. Acceptable documentation includes a bank statement, credit card statement, electronic receipt for a money transfer, or a receipt from the organization.
• Non-cash contributions: Goods or property donated to your church may be eligible for tax deductions. For items, you need to deduct their fair market value at the time of the donation to reach the value. 
• Out-of-pocket expenses when volunteering: Some volunteer expenses may qualify as a tax deduction if the church doesn’t reimburse you. These expenses have to be non-personal, like office supplies, postage, and equipment. If any of the travel was for recreation, vacation, or personal reasons, they are not deductible.

Types of donations that are often non-deductible include:

• Value of your time or services
• Costs of raffle, bingo, or auction ticket

That said, contributions where you benefit, like a ticket to a church dinner dance or auction, may partially qualify if you pay more than the fair market value to the church for the goods or service. 

For example, if you pay more than the fair market value to attend a church charity event, you can only deduct the amount that is more than the expected cost. So, if you paid $60 for a fundraising movie event where the regular price for the movie is $15, your contribution would be $45.  

Overall, understanding church tithes and taxes ensures you know which gifts are deductible and which are not.

Are your church donations tax deductible?

If you’re looking to make a gift that is tax-exempt for churches, there’s a lot to consider.

First, giving to your church provides a way to support your church’s mission, your faith, and your community. Second, your charitable donations to your church can also lower your taxable income. Importantly, charitable gifts may qualify as tax deductions if your church meets the IRS standards as a tax-exempt organization and you itemize your personal tax deductions. Additionally, the type of donation must meet the IRS eligibility requirements.

If you plan to deduct your church or other charitable donations, you’ll want to keep proper records of all the donations. You’ll also want to keep in mind that there are limits on how much you can deduct, depending on your adjusted gross income and the type of donation made.

Ultimately, knowing how church tithes and taxes work can help you make informed financial decisions that honor both your faith and fiscal responsibility. The IRS rules governing charitable donations can change from year to year, so you may want to consult a tax professional for specific advice regarding your situation.  

More resources you may find helpful

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• BARNA STUDY: 74% of Christians want a digital resource hub. Here’s how your church can respond