October 1, 2014

The IRS and Your Contribution Statements

Churches can show their gratitude to donors when church staffers do all they can to help donors report their contributions to the IRS as tax deductions.

The best way a church can help in this process is to give end-of-year contribution statements to their donors that include a declaration like the following:

“No goods or services were provided by the church in return for the contribution.”

Wording like this is essential for donors to report their contributions.

(To learn what to do if donors do receive goods and services, or if donors make non-cash donations, see our free ebook – Recording and Increasing Church Donations.)

So how can IconCMO users include that important declaration for the IRS on contribution statements? IconCMO makes it easy. Below are the steps to follow, along with some screenshots to follow the outlined steps.

1. Make sure you’re in the correct fiscal year for the statements (Organization > Preferences > Personal Preferences).
2. Go to Contributions > Management > Cont-Statements in the left side menu.
3. Go down through the various options to set up the format, fund type, funds, name range, date range, and so on.
4. Click ‘Lookup’ next to ‘Letter To Use’. This will bring up a new window.

IconCMO Contribution Statements Window

IconCMO Contribution Statements Window

 

5. Under ‘Letter Name’ type the name of the letter you’re going to include (e.g. “IRS Note”).
6. Type the text of your letter in the big white box (e.g. “No goods or services…”).
7. Click ‘Add’.
8. Click the dropdown next to ‘Current Letters’ and select your new letter.
9. Click the ‘Close’ button.

IconCMO Add-Letter Window

IconCMO Add-Letter Window

 

The new letter name will show up next to ‘Letter To Use’ in your Contribution Statements window; it will now be included at the bottom of each statement. For future statements, all you’ll have to do to include the letter is click that same ‘Lookup’ button and select the letter’s name from the ‘Current Letters’ drop down.

For more information about contribution letters or any of the other functions in the window for contribution statements, go to Contributions > Management > Cont-Statements and click on ‘?help!’ in the upper left. A support forum post will come up with more detailed information. Please keep these ‘?help!’ options in mind when you have questions about other windows in IconCMO.

We also wanted to include the year-end instructional video, which can also be found on the homepage of your IconCMO account.

Comments

  1. Does the IRS accept the e-mailed statements as sufficient when filing taxes or should end of year statements be printed?

  2. Thanks for the info. However, why do you guys have to make it so complicated? Just put the statement on yourself and make it a part of the contribution statement! Or make it a button you click so you can choose to have it on there or not?

    • Sorry to hear that! Unfortunately, I’m not sure we could make it much simpler as there isn’t just one way to phrase that statement. The good news is that you do only have to type the IRS disclosure into the system once and then you can re-use it from year to year. So now that you’ve figured it out you should be good to go!

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