Quote:
Originally Posted by n david
It also depends on how the donation was given. Both donors and church Pastors should be aware of the law when giving/receiving donations. For the donors, it matters how they give if they wish to receive a tax deduction for their donation. For the church and Pastor, it matters how it was given, because one donation could be used "as needed" by the church/Pastor and another could result in civil fraud if not used for its stated purpose.
If a donor gives a "restricted" offering, the church Pastor cannot deviate from what the money was intended to fund. It is against the law, and the church and Pastor could be sued for civil fraud. The plus side for the donor is they can rest assured the money will be used as intended. The negative is the donor cannot receive a tax deduction for the donation.
If a donor gives a general donation, it can be used as needed and the donor will be able to receive a tax deduction.
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It was explained to me, second hand because I was not there for the official announcement. The donor(s) are deceased and it was in a 2 year holding. Their desire was to see the youth dept benefit from it. The decision was to pay off the bulk of a loan. We had a major addition a couple of years ago. Then the church will pay back into on a monthly basis the amount at a reduced interest free amount. This will allow the hiring of a full time youth minister. Yes, full time. Paid. Sounds weird to some I would imagine.
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