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 Association of Tax Professionals, and the Institute of Management Accountants.
Visit my website at www.johnstancilcpa.com.
Also visit my blog, www.thetaxdocspot.com.
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. I have prepared taxes for over 30 years.
Education/Credentials DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
Question Have looked through some of your other answers which specify that if a gift is designated to an individual it is not deductible. Is this also the case when the church collects an offering either for benevolence towards an individual who is in need or a missionary we already support?
Answer Matt,
Thanks for your question.
In giving support to a missionary, it is preferable to give it through a mission organization.
The issue here is what freedom does the church have in using the funds? For example, suppose the church wants to help out person X and makes it known to the church that person X has a need and the church is going to help. Contributions come in that exceed the level of support the church wants to give to person X. If the church has the freedom to divert some of those funds to other needs, then contributions to the fund are tax deductible. If they are given only to help person X, they would not be deductible.
The idea here is to avoid a situation where a relative of mine has a medical need and I contribute to the church to help that relative. Bottom line, I have helped my relative and gotten a tax deduction for it. That is prohibited and is what the designation rule is about.
The donor cannot exercise undue control over the use of the funds contributed.
