Tax deductible contributions
Posted: Mon Jun 14, 2010 8:09 pm
The YW in our ward hold an annual bake sale to raise money for Girls Camp. The proceeds are deposited into Other-YW. Since the money is deposited in an "Other" account, it does not appear as a tax deductible item on the year end tithing statement. The amount paid for the baked goods exceeds the fair market value of the goods. The Internal Revenue Code specifies that the excess of the payment over the fair market value is deductible if the taxpayer itemizes their deductions.
We are considering issuing a statement on church stationery and signed by the Bishop to the members buying the baked goods. This statement would indicate the amount paid and would indicate the member needs to determine the fair market value of the goods purchased and only this excess is deductible for tax purposes.
Does this violate any church policies? Any comments or suggestions?
We are considering issuing a statement on church stationery and signed by the Bishop to the members buying the baked goods. This statement would indicate the amount paid and would indicate the member needs to determine the fair market value of the goods purchased and only this excess is deductible for tax purposes.
Does this violate any church policies? Any comments or suggestions?