How Church Donations Can Lower Your Tax Bill

The old saying goes, Nothing is certain except death and taxes. Every spring individuals and couples all across the country bring out their calculators and scrounge around for receipts. Working on your taxes can be compared to the opening lines of A Tale of Two Cities. “It was the best of times, it was the worst of times…..it was the spring of hope, it was the winter of despair.” Hope for a potential refund often turns to the dim reality of owing the government money.

You may not be able to control when taxes are due, or the percentage of your income tax because one way or another Uncle Sam always gets his money. But, the good news is there are ways to decrease how much you owe the government. One of the easiest ways to decrease the amount you owe on your taxes is through making a charitable donation to a church or non-profit organization. Giving to a Christian Charity is beneficial for a few reasons.

Two Reasons to Make a Charitable Donation

  1. Charitable Donations are Tax Deductible. A percentage of every charitable dollar you give will be able to be deducted from how much you owe the government at the end of the year. The truth is, you’re going to have to pay one way or another, so you might as well give to something that matters to you. You can use this online calculator to help determine how much you will be able to deduct with your charitable giving. This article also helps explain how much can be saved from giving.
  2. Your Money Can Impact the World in a Positive Way. The words of Jesus ring true, “It is more blessed to give than to receive” (Acts 20:35). The truth is, it feels good to give. It feels good to know that your money is making a difference in the world. Jesus often told stories in which he reminded people that we can’t take our money with us when we die, so we might as well invest in things that matter while here on earth. It feels good to know that your dollars are improving people’s lives or helping them learn about Jesus. Besides decreasing the amount you owe on taxes, giving is a good investment for your heart.

A few things to consider when making Church Donations

  • Make sure the organization you’re interested in giving to is a 501c3 tax-exempt organization. You can follow this link to a tool on the IRS website to look up qualifying non-profits. You are welcome to give to any trusted charitable organization you like.  However, you can only reap tax benefits from giving to those with a 501c3 status.
  • Keep your receipts when giving. Whenever you give a financial donation, it’s important to ask for a receipt for tax purposes. Some organizations send out tax receipts at the end of each year. Others will give you a receipt for each donation. These receipts will be important to prove your giving for tax purposes.
  • You can donate more than money. You can assign a cash value to items given to charities like the Salvation Army, etc. The value of these charitable donations can then be taken off your taxes. It is important to note that a tax deduction cannot be made for time serving for a non-profit. Here’s a link to the IRS website that will give you more information about what items you can give for a tax deduction.

If you’re interested in learning more about what qualifies for a tax deductible donation to a Christian Charity, check out this article and this article. 

Get Started

If you’re looking to leave a legacy of changed lives, consider giving to the Church Web Fund. We’re a 501c3 charitable organization who believes the internet is the next great mission field for the gospel of Jesus. Every day churches are closing because they were unable to keep up with advances in online technology. We help under-resourced churches update their online presence. This ensures that every searching soul knows that Jesus is the answer, and the church is there to help. If you’d like to learn more click HERE.  We’d love to get to know you and share how Church Web Fund is making a real difference.