Love offering to a member...

by db
(MN)

Our church took an offering for one of our members and it was a significant amount. Is the member receiving the offering required to pay taxes? Secondly, is the church required to pay gift taxes?

Thanks.

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standing corrected
by: Lewis in NC

I stand corrected; it sounds like the law puts the full burden of any tax reporting on the nonemployee recipient of the love offering. I will get me a copy of your source--the reviews of it are excellent. Thank you for sharing the clarification.
Love offering to a member...
by: Anonymous MN

If the Love Offering to a non employee member is a benevolent gift ...

... according to Zonervan's 2014 Church and Nonprofit Tax & Financial Guide written by Dan Busby CPA, J Michael Martin JD, John Van Drunen JD, CPA, page #110,

'Benevolence payments to nonemployees are not reportable on Form 1099-MISC or any other informational form. Benevolence payments to employees are reportable on Form W-2.'
Love offering to a member. . .
by: Lewis in NC

The answer to your first question is yes since the church should also prepare a 1099 form for the member. The answer to the second question is no. Please read more under the tab to the left, "Gift to Individual."

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