It’s tax season. Your church members may have questions about the tax deductibility of monies paid to the ministry during the year. As a general rule, charitable contributions made to qualified orga- nization are tax deductible. Churches are qualified organizations. Nonetheless, there are some important rules to keep in mind. Quid Pro Quo Contributions Rule A Quid Pro Quo contribution is a payment made to a church partly for charitable reasons and partly for goods…

One of the advantages churches enjoy is a favorable tax treat- ment under Federal, state, and local laws. The reason churches are given favored treatment is public policy recognition of the special missions these organizations undertake. In exchange for the favorable tax treatment, churches must adhere to limitations on their activities. Churches that step over the line could face sanctions that may threaten their tax status. Understanding how courts draw this line is important for…