As the year draws to a close, church treasurers and administrators turn to one of their most important year-end tasks: sending giving statements to members. These statements are more than a thank-you note. For many donors, they are the documentation the IRS requires to claim a charitable deduction. And starting with 2026, more of your members than ever may be able to use them.
Why 2026 Statements Matter More
Under the 2025 tax law, taxpayers who do not itemize their deductions can now deduct up to $1,000 of cash gifts to qualifying charities ($2,000 for married couples filing jointly), beginning with 2026 tax returns filed in 2027. For years, most church members took the standard deduction and received no tax benefit for their giving. Now many of them will, and they will look to the church for accurate records.
Itemizers face a change too: beginning in 2026, the first 0.5% of their adjusted gross income in charitable gifts is not deductible. That does not change what the church must provide, but members may ask about it, so it helps to be aware.
The $250 Rule
For any single contribution of $250 or more, the donor must have a written acknowledgment from the church to claim a deduction. A canceled check alone is not enough. According to IRS Publication 1771, the acknowledgment must include:
- The name of the church
- The amount of any cash contribution
- A description (but not the value) of any non-cash property donated
- A statement of whether the church provided any goods or services in return
That last item is the one most often missed. If nothing was provided, say so plainly, for example: “No goods or services were provided in exchange for these contributions.” Churches have a helpful option here: if the only thing a donor received was an “intangible religious benefit,” such as worship services or spiritual ministry, the statement may say so without assigning any value. Many churches use wording such as: “No goods or services were provided in exchange for these contributions other than intangible religious benefits.”
Timing: When Must Statements Go Out?
The IRS requires the donor to receive the acknowledgment by the earlier of the date they file their return or the return’s due date (including extensions). Because members often file early, the IRS notes that charities typically send statements by January 31. Getting them out promptly is a real service to your members.
Annual Statements and Weekly Offerings
A single annual statement may cover several contributions of $250 or more, which is why most churches send one year-end summary. Keep in mind:
- Separate gifts under $250 are not added together for the $250 rule. A member who gives $50 every Sunday does not trigger the requirement, even though the yearly total exceeds $250. However, that member still needs a bank record or a written receipt for each gift, so an annual statement listing gifts is still valuable.
- For gifts made through payroll deduction, each deduction of $250 or more counts as a separate contribution.
When Donors Receive Something in Return
If a donor pays more than $75 that is partly a gift and partly payment for goods or services (for example, a fundraising dinner ticket), the church must give a written disclosure. It must explain that only the amount above the value of what was received is deductible, and provide a good-faith estimate of that value. The penalty for failing to do so is $10 per contribution, up to $5,000 per fundraising event or mailing, unless the church shows reasonable cause.
Non-Cash Gifts
For donated property, such as equipment, a vehicle or stock, describe the item, but do not place a value on it. Valuing the gift is the donor’s responsibility. Larger non-cash gifts carry extra rules for the donor (including IRS Form 8283), so encourage those donors to talk with their tax advisor.
A Year-End Checklist for Treasurers
- Reconcile giving records to bank deposits before preparing statements.
- Confirm each statement includes the church’s name, amounts and the goods-or-services language.
- Describe non-cash gifts without assigning a value.
- Note gifts in which a donor received goods or services, with the value provided.
- Plan to deliver statements by January 31, 2027.
- Keep copies with your church’s financial records.
Clear, accurate giving statements protect your members’ deductions and reflect well on your church’s stewardship. A little care now will save questions in tax season.
If you need guidance that is tailored specifically to your unique situation, we encourage you to connect directly with Pro Advisor Support. Their experienced team specializes in assisting clergy and church organizations with complex tax, payroll, bookkeeping, and HR matters. Whether you have detailed questions about compliance, deductions, or planning strategies, they can provide expert advice and walk you through the next steps with clarity and confidence.
Clergy Financial Resources
Tax | Payroll | Bookkeeping | HR | Consulting
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421.0101
This article provides general information and is not tax or legal advice. Tax law changes frequently, and every minister’s situation is different. Please consult a qualified tax professional before acting on this information.
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
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