As your church prepares to send out contribution statements to your donors, it’s easy to view this task as another administrative burden. However, these statements present an incredible opportunity to strengthen relationships with your congregation, express gratitude, and celebrate what God is doing through your ministry.
Below, we’ll outline the essential elements donors like to see on a contribution statement and share tips on transforming this document from a routine financial record into a message of appreciation and inspiration.
What is a Contribution Statement?
A contribution statement, a year-end tax receipt or giving summary, summarizes a donor’s financial contributions to your church for the year. It provides essential details about donations, ensuring compliance with IRS regulations while offering donors the necessary documentation for tax purposes.
While churches in the U.S. are not required to produce these statements unless a quid pro quo contribution exceeds $75, it’s highly recommended. Here’s why:
- Tax Benefits for Donors: Donors need written proof of their contributions to claim them as tax deductions.
- Legal and Audit Support: Providing clear records protects your church in the event of an IRS audit.
- Relationship Building: Contribution statements offer an opportunity to express gratitude and deepen connections with your congregation.
What Should Be Included in a Contribution Statement?
To create a meaningful and compliant statement, include the following key items:
- Donor Information: Name and address of the donor.
- Organization Details: Your church’s name and contact information.
- Donation Summary: Dates, amounts, and methods of contributions.
- Acknowledgment of Goods or Services:
- If no goods or services were provided, include a statement such as: “No goods or services were provided in exchange for this contribution.”
- If goods or services were provided, describe them and estimate their value.
- If only intangible religious benefits were provided, state this clearly.
- Expression of Gratitude: A short message thanking the donor and acknowledging the impact of their generosity.
- Vision Casting: Share how their contributions help fulfill your church’s mission and vision.
How to Transform Contribution Statements into a Ministry Opportunity
Instead of treating contribution statements as merely a compliance task, use them to:
- Express Heartfelt Gratitude: Add a personal touch by including a 2-4 sentence note that thanks the donor for their support. For example:
“Thank you for your generous contributions this year. Your faithfulness allows us to share the love of Christ and reach our community in meaningful ways. Because of you, lives are being transformed!” - Celebrate God’s Faithfulness: Highlight how God has worked through the church because of their generosity. Whether it’s a new ministry launched or lives changed, connect their giving to a greater purpose.
- Look Ahead: Share a brief glimpse of what’s to come, inspiring donors with the role they’ll continue to play in advancing the church’s mission.
How We Can Help
At Global Office Services, we understand that administrative tasks like contribution statements can feel overwhelming, especially when combined with the daily demands of ministry. That’s where we come in!
Here’s how we can help your church:
- Efficient Recordkeeping: We’ll ensure all donor information is accurately tracked and organized, making it easy to generate statements.
- Compliance expertise: We’ll review your contribution statements to ensure they meet IRS guidelines and include all required details.
- Customized Communication: We’ll help craft meaningful, personalized messages that express gratitude and inspire continued support.
- Time Savings: Outsourcing this task to us’ll free up valuable time to focus on ministry.
Let us handle the details so you can focus on shepherding your flock and fulfilling your church’s mission. Contribution statements are more than a legal requirement; they’re an opportunity to bless and build relationships with your congregation.
Ready to get started? Contact us today to learn how we can make your contribution statement process seamless and impactful!
