Giving Policy
DESIGNATED GIFTS POLICY
This policy sets forth the conditions under which the church may accept designated gifts. Subject to this policy, the church may accept donations from its members and friends who want to donate to the church and have such donations (i) used to support organizations that are qualified to receive tax deductible contributions, or (ii) used to support the mercy ministry of the church. The church cannot, however, accept gifts for organizations outside the Church on a regular recurring basis. The Session has considered and declined to be so involved in the giving of our members to organizations outside of the church. To do so would put a heavy burden on the church staff.
The church desires to be careful to assure it is not involved in creating a tax deductible contribution for some purpose that would not otherwise qualify for a tax deduction. For instance, the church wants to make sure that a donation to benevolence, missions, or mercy ministries is for the purpose of furthering the ministry of the church (and not a non-deductible gift to an individual through the church). The tax laws are difficult to understand even with the advice of professionals. For this reason, the Elders of NCPC, following competent advice, have set forth guidelines under which the church, as a tax exempt organization, can accept designated gifts:
1. Gifts Designated for a Specific Organization. Designated gifts cannot be forwarded to organizations (and for the ministry of persons in such organizations) unless such organizations and ministries are on an approved list authorized by the Elders. Organizations (and ministries within such organizations) are on the approved list if they are included in the current budget of the Church.
2. Gifts Designated for a Specific Individual. Gifts designated for individuals or designated for the benefit of a specific individual are not tax deductible contributions and the church will not accept such gifts unless the donor is aware of the churchs policies regarding gifts designated for an individual set forth on Exhibit A.
3. NCPC will make available to its member or any interested party the policies regarding designated gifts upon request to the Administrative offices.
4. Verbal designated gifts are not acceptable. Designations must be in writing in an accompanying memorandum or note or else indicated on the check. The church must, by law, reserve the right to disregard designations despite the directive by the individual donor.
5. The church cannot accept gifts that are outside the designated ministries list approved by the Elders. However, a member of NCPC can submit a specific cause or ministry for approval to the designated giving list. This request should be submitted in writing for review by the Elders and a response will be made to the members request in a timely manner.
6. It is the policy of NCPC that designated gifts should be in addition to the members regular tithes and offerings. However, if a member designates gifts that are not above and beyond their tithe, it should be noted that the church may have a difficult time covering its budgeted expenditures not only for operating expenses but for all of the benevolences and missions supported by contributions and tithes.
7. In no case will advance approvals be sought out without full approval by the Elders. A potential donor will be fully advised of the policy of the church and must make their decision on that basis alone. Church staff is responsible to see that every such potential member is made aware of the provisions of paragraph 2 of this Policy as it relates to the inability of the church to return gifts under the provisions set out in the Policy Statement.
8. NCPC will post quarterly updated financial reviews of all designated gifts and distribution of said gifts; which will be available for review at a designated location on the church facility as well as posted on the NCPC web site for NCPC membership.
9. Summary of IRS Guidance. A good summary of IRS guidance provides that a deduction is acceptable if:
The Church has control and discretion over the contribution unfettered by a commitment or understanding that the contribution would benefit a designated individual.
No commitment or understanding exists between a donor and the church that a contribution will benefit a person or persons specified by the donor.
The donor understands that any funds contributed to the church would be distributed according to its discretion.
Exhibit A-Gifts Designated for a Specific Individual Policy
North Coast Presbyterian Church has established a benevolence fund to assist people in financial need. From time to time, the leadership may set aside certain amounts out of the benevolence fund to meet a particular benevolent need. NCPC welcomes contributions to our benevolence fund; and it has established policies regarding contributions in order to comply with mandates set forth for the tax exempt purposes. This will assure full compliance that the gifts are to or for the benefit of a charitable organization and not a specified individual as set forth in the policies below:
1. Designated gifts to an individual are received and understood to be advisory only rather than obligatory. That is, the administration and disbursement of all designated funds are subject to the exclusive control and discretion of the Elders and specific designations may not be followed. Donations should not be made if the individual is not in agreement with the understanding of set policy being subject to the discretion of the church officers designated above.
2. Amounts set aside for a particular need as set forth by the Elders may have a targeted amount and a limited duration. Excess funds or fund remaining at the end of the fiscal year may revert to the general operating account at the discretion of the Elders.
Designated Giving List
1. Tithe
2. Benevolence
3. Missions / PCA Support
4. Debt Management
5. Scholarships for events
6. Special projects approved by Session (each with a time duration)
In the event there is a question regarding this Policy, please contact Bryan at (760) 753-2535 x10.
Approved May 6, 2007
This policy sets forth the conditions under which the church may accept designated gifts. Subject to this policy, the church may accept donations from its members and friends who want to donate to the church and have such donations (i) used to support organizations that are qualified to receive tax deductible contributions, or (ii) used to support the mercy ministry of the church. The church cannot, however, accept gifts for organizations outside the Church on a regular recurring basis. The Session has considered and declined to be so involved in the giving of our members to organizations outside of the church. To do so would put a heavy burden on the church staff.
The church desires to be careful to assure it is not involved in creating a tax deductible contribution for some purpose that would not otherwise qualify for a tax deduction. For instance, the church wants to make sure that a donation to benevolence, missions, or mercy ministries is for the purpose of furthering the ministry of the church (and not a non-deductible gift to an individual through the church). The tax laws are difficult to understand even with the advice of professionals. For this reason, the Elders of NCPC, following competent advice, have set forth guidelines under which the church, as a tax exempt organization, can accept designated gifts:
1. Gifts Designated for a Specific Organization. Designated gifts cannot be forwarded to organizations (and for the ministry of persons in such organizations) unless such organizations and ministries are on an approved list authorized by the Elders. Organizations (and ministries within such organizations) are on the approved list if they are included in the current budget of the Church.
2. Gifts Designated for a Specific Individual. Gifts designated for individuals or designated for the benefit of a specific individual are not tax deductible contributions and the church will not accept such gifts unless the donor is aware of the churchs policies regarding gifts designated for an individual set forth on Exhibit A.
3. NCPC will make available to its member or any interested party the policies regarding designated gifts upon request to the Administrative offices.
4. Verbal designated gifts are not acceptable. Designations must be in writing in an accompanying memorandum or note or else indicated on the check. The church must, by law, reserve the right to disregard designations despite the directive by the individual donor.
5. The church cannot accept gifts that are outside the designated ministries list approved by the Elders. However, a member of NCPC can submit a specific cause or ministry for approval to the designated giving list. This request should be submitted in writing for review by the Elders and a response will be made to the members request in a timely manner.
6. It is the policy of NCPC that designated gifts should be in addition to the members regular tithes and offerings. However, if a member designates gifts that are not above and beyond their tithe, it should be noted that the church may have a difficult time covering its budgeted expenditures not only for operating expenses but for all of the benevolences and missions supported by contributions and tithes.
7. In no case will advance approvals be sought out without full approval by the Elders. A potential donor will be fully advised of the policy of the church and must make their decision on that basis alone. Church staff is responsible to see that every such potential member is made aware of the provisions of paragraph 2 of this Policy as it relates to the inability of the church to return gifts under the provisions set out in the Policy Statement.
8. NCPC will post quarterly updated financial reviews of all designated gifts and distribution of said gifts; which will be available for review at a designated location on the church facility as well as posted on the NCPC web site for NCPC membership.
9. Summary of IRS Guidance. A good summary of IRS guidance provides that a deduction is acceptable if:
The Church has control and discretion over the contribution unfettered by a commitment or understanding that the contribution would benefit a designated individual.
No commitment or understanding exists between a donor and the church that a contribution will benefit a person or persons specified by the donor.
The donor understands that any funds contributed to the church would be distributed according to its discretion.
Exhibit A-Gifts Designated for a Specific Individual Policy
North Coast Presbyterian Church has established a benevolence fund to assist people in financial need. From time to time, the leadership may set aside certain amounts out of the benevolence fund to meet a particular benevolent need. NCPC welcomes contributions to our benevolence fund; and it has established policies regarding contributions in order to comply with mandates set forth for the tax exempt purposes. This will assure full compliance that the gifts are to or for the benefit of a charitable organization and not a specified individual as set forth in the policies below:
1. Designated gifts to an individual are received and understood to be advisory only rather than obligatory. That is, the administration and disbursement of all designated funds are subject to the exclusive control and discretion of the Elders and specific designations may not be followed. Donations should not be made if the individual is not in agreement with the understanding of set policy being subject to the discretion of the church officers designated above.
2. Amounts set aside for a particular need as set forth by the Elders may have a targeted amount and a limited duration. Excess funds or fund remaining at the end of the fiscal year may revert to the general operating account at the discretion of the Elders.
Designated Giving List
1. Tithe
2. Benevolence
3. Missions / PCA Support
4. Debt Management
5. Scholarships for events
6. Special projects approved by Session (each with a time duration)
In the event there is a question regarding this Policy, please contact Bryan at (760) 753-2535 x10.
Approved May 6, 2007
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