How do I provide a receipt for time or services donated to the church?

Per IRS regulations, it is illegal to provide an individual or business a contribution receipt (or credit) for donating time or services to the church. However, it is acceptable for the church to pay for the services performed and then for the money to be donated back to the church. See IRS Publication 526, Contributions You Can Deduct, Table 1 for more information.

It is possible for an individual providing services to a church to claim as a deduction a portion of or all of the cost of "out-of-pocket" and/or travel expenses when providing a service to a church. In this case, the church should provide a letter to the donor indicating the service provided but should not include the value of the service or out-of-pocket expenses. See IRS Publication 526, Section Records to Keep, Out-of-Pocket expenses for all the details.

The information contained on this web page is of a general nature. It is not offered as specific legal or tax "advice." Each person, local church, and district should evaluate their own unique situation in consultation with their local legal and tax advisors.