In order for a Church member to claim a tax deduction for a cash donation in excess of $250, they must obtain written documentation from the Church acknowledging the gift. The acknowledgment from the Church must include a statement that the Church member didn't receive anything in exchange for this gift except for intangible spiritual benefits. Canceled checks or bank statements do not constitute sufficient documentation for cash gifts exceeding $250.
The Church member must also be in possession of this documentation before the due date of the tax return that the deduction is being taken on.
These rules do not apply for cash donations that are less than $250 individually but exceed $250 in aggregate. Canceled checks or bank statements would be adequate for these types of cash donations. However, PSK recommends giving all members a written receipt for their donations whether or not any single donations exceed $250.
For example, Church Member A donates $100 per month for an entire year. Although their total donations amount to $1,200, they could take a tax deduction for the donations as long as they have canceled checks or bank statements to substantiate the donations.
Church Member B makes two $600 donations during the year. Their donations also amount to $1,200 however Church Member B must have a written receipt from the Church in order to take a tax deduction for their donations. Again, the receipt must include a statement that no goods or services were received in return for the donation except for intangible spiritual benefits. Church Member B must also be in possession of the receipt prior to the due date of the tax return in which the deduction is included.
There is another set of rules for non-cash donations.
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