Noncash Contribution Warnings

Many individuals provide noncash contributions to the church including clothing, motor vehicles, furniture and food stuffs.  In order for these individuals to get credit on their tax returns, they will need a receipt for the items contributed to the church.

If the contributions have a value of $250.00 or more, then a written receipt must be provided which provides a description of the donated items, whether the church provided goods or services in exchange for the donation, and if the church did provide goods or services, the value of the same.

If the contributions have a value of $500.00 or more, then the property must be in ‘good used condition or better’ and the individual will need to provide an appraisal showing the value of the items. The individual may also need to complete Form 8283 which will require the church’s signature as well.

Although most of the requirements to prove the value of the deduction rests upon the individual, the church would be wise to know these rules so the individual could be advised as to how to be in a position to prove the value of the contribution.

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