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Charitable donations

I have a quick question regarding charitable donations to a 501c3 organization. We are a Church who has two large ministries under the same tax id as the Church. If someone wanted to contribute to either our school or our sending mission agency, is that okay? Meaning, is it still tax-deductible or does the donor need to make their checks payable to the main entity?

Answers

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Anon,

It sounds like you've got one legal entity? And that your 501c3 mission is covers all of those operations (ministry plus education)? If that is the case, then it makes no difference at all whose name is on the check because it is the same legal entity. My guess from your description is that you've got an internal name/ structure for the different departments, but that you only have one operating company.

I'm also guessing about the approved operation under the 501c3. For example if the school is a for-profit division of the company and isn't on the description of what you do on your 1023 application, and is creating an "unrelated income" situation for the non-profit tax filing, then you don't want donations being earmarked for that for-profit activity. I highly doubt this is the case, but that would be a "gotcha" here.

Note, if you have more than one company but only one tax id, you should fix that.

Anonymous
(unemployed) |

The legal entity is the Church. The school and Mission Agency are registered trade names of the Church...so LEGAL NAME dba MINISTRY NAME....if this makes sense.

I'd have to do some research to determine how the application was completed as I was not involved in that process.

Thank you for your insight.

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

I think this is just a simple case of RESTRICTED CONTRIBUTIONS. The main point here is the recording of the donation TO WHERE THE DONOR INTENDED it to be OR if you maintain separate bank accounts for the ministries, deposited to the appropriate account.

I think your best resource is your Auditor or Tax Accountant.

Anonymous
(unemployed) |

Would the same be true for a non-cash donation of say, a used vehicle? Typically all vehicles are owned by the church and insured under a policy held by the church. I would think that a vehicle "signed over" to the Missions Agency should follow the same as other vehicles.

Thanks,

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