By Steve Crawley, PhD, Executive Director • BMA Financial
Every January, and often again midyear, church leaders ask a very practical question: Do we really have to issue a charitable contribution statement for every gift? What if a visitor drops a one-time $10 check in the offering plate — are we required to send a receipt?
According to Matthew Branaugh, attorney and editor with Church Law & Tax, the answer is actually rather straightforward. Federal law does not require churches, as a matter of law, to issue contribution statements to donors. Receipts are not mandated by the IRS; they are a courtesy churches extend to help donors substantiate charitable deductions.
That distinction matters. Contribution statements exist for the donor’s benefit, not because the IRS regulates churches to issue them. In fact, with changes in tax law over the past several years, most taxpayers no longer itemize deductions, meaning many donors don’t technically need a formal receipt to file their return.
Where confusion often arises is this: while churches are not legally required to issue statements, donors are legally required to have proper documentation to deduct certain gifts.
For contributions under $250 or less, donors do not need a church-issued statement. A canceled check, bank statement, or electronic record showing the church’s name, date, and amount is sufficient. This remains true even if a donor gives repeatedly throughout the year. A donor could give $10,000 in total during the year, and if no single gift was $250 or more, the IRS does not require a written acknowledgment from the church for deductibility purposes.
However, once a donor makes a single contribution of $250 or more, the donor must receive a written acknowledgment from the church to claim the deduction. While the law still regulates the donor, churches effectively must provide that acknowledgment if they want to serve their donors well. That acknowledgment must include the church’s name, the amount (or a description of non-cash gifts), and a statement indicating whether any goods or services were provided in return.
Even though issuing statements for smaller gifts isn’t mandated, it remains a good stewardship practice. It promotes transparency, builds trust, and reduces confusion for both the church and the donor.
The takeaway for BMA churches is simple: churches aren’t regulated into issuing receipts, but donors are regulated on documentation. Providing clear, accurate statements — especially for larger gifts — is wise, orderly, and good stewardship.
Adapted from guidance by Matthew Branaugh, attorney and editor, Church Law & Tax. Additional sources include IRS Publications 526 and 1771.
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