Gift to Church Member

by Ginger
(Florida)

If a church gives a gift (one-time) to a member of the church for need based purposes, is that taxable? If the member is a deacon or another type of leader in the church does that make a difference? And if other deacons didn't receive a gift does that make a difference?

vickey's reply

According to Dan Busby, CPA, in his book: <Zondervan 2011 Church and Nonprofit Tax and Financial Guide...

Love offerings (gifts) to staff members from church or nonprofit funds are taxable....unless they meet one of the following exceptions:
• De minimis gifts...gifts less than $25 in value. (Cash, gift cards, or other cash equivalents are not de minimis gifts, regardless of how small the value)
• Employee achievement awards...requires a written, nondiscriminatory award program, which provides awards either upon attaining longevity goals or safety standards and meets other requirements for type of gift and limits on amounts.
• Staff member is a church attendee...requires careful documentation to ensure that the employee would have received a benevolence payment, and in the same amount, if the individual had not been a staff member. *Note: Many churches adopt policies prohibiting the payment of benevolence funds to employees.