End-of-year giving can be highly beneficial for some. If you're looking to make some last-minute donations before the end of the year, we would love for you to consider donating to CapCity. Below is information regarding financial planning and qualified charitable distributions (QCDs). Of course, we recommend you consult your financial, legal, and tax specialists before making a final decision.

If I contribute in early January 2023, can I claim it on my 2022 taxes?

No, charitable contributions must be claimed in the year they are delivered.

If I mail my contribution in December 2022, but it doesn’t reach my church until January 2023, for which year should I claim it?

On your 2022 tax return. A check mailed to a charity is deductible in the year the bill is sent (and postmarked), even if it is received in the next year.

I gave $135 to my church when I registered for a spring retreat. Can I deduct that?

No, assuming you received benefits (e.g., lodging, meals, instructional materials) worth $135 or more. Charitable contributions are generally deductible only to the extent they exceed the value of any premium or benefit received by the donor in return for the gift.

Can I deduct the value of my volunteer work for the church?

No, the value of personal services is never deductible as a charitable contribution. However, you may incur unreimbursed expenses in performing services on behalf of a church. For 2023, you can use a “standard mileage rate” (14 cents per mile) to compute a deduction for any miles you drive in performing services for your church. Be sure to maintain accurate records.

Is there any limit to the number of cash contributions I can deduct from my taxes?

In 2020 Congress increased the maximum charitable contribution deduction for cash contributions from 60 percent to 100 percent of adjusted gross income (AGI). This was extended through 2022, but in 2023 the maximum drops to 60 percent of AGI.

I designated my contribution to the church benevolence fund. Is it deductible?

That depends. “Restricted contributions” are those made by a donor to a church for a specified purpose. If the goal is an approved project or program of the church, you can deduct the contribution (if you claim itemized deductions on Schedule A of Form 1040).

If you designate a $100 gift to the church benevolence fund, it is deductible unless you specify that your contribution is applied to a named individual; no deduction is allowed.

Contributions to a church or missions agency that designate a particular missionary may be tax-de-ductible if the church or missions agency exercises complete administrative control over the gifts and ensures that they are spent in furtherance of the church’s tax-exempt purposes.

What kind of records do I need to prove I contributed? For individual cash contributions (regardless of amount)

You can’t deduct a cash contribution, regardless of amount, unless you keep one of the following: (1) A bank record (such as a canceled check, bank statement, or credit card statement) that shows the name of the church, the date of the contribution, and the amount of the contribution; (2) a receipt (or a letter or other written communication such as an email) from the church showing the name of the church, the date of the contribution, and the amount of the contribution; or (3) payroll deduction records (see IRS Publication 526).

For more information, check out churchlawandtax.com

There are many options and benefits, but we recommend you seek professional advice on all legal and tax matters. Should you be interested in donating stocks, you can find more information on initiating that here. If you have any questions or need more information about end-of-year giving, please get in touch with our Executive Minister, Jon Sutphin, at [email protected].