AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Expert: John Stancil, CPA Date: 7/16/2008 Subject: Church provided material and gifts
Question Is there an established monetary threshold to be used when providing literature, books, and materials for Christian education (e.g. Sunday School, Bible studies, Small Groups)? At what level would a "tangible benefit" need to be documented since financial supporters are receiving a tax-deductable credit while getting free materials? This scenario would also apply to gifts, benevolence, and scholarships. Please refer me to any additional resources which may clarify.
Answer Kenneth,
Thanks for your question.
The key here is whether there is a pro-quid-pro. In other words, if everyone in the group gets the materials regardless of contributions made to the church, there is no pro-quid-pro and there is no benefit being received (tax wise). On the other hand, if the materials are given free to those who are contributors, but other have to pay for them, the contribution equal to the value of the materials is not a deductible contribution.
Richard Hammar's Church and Clergy Tax Guide is an excellent resource.
