King's Business - 1960-03

Personalized Gifts to Missionaries are NO T Deductible

Want to make your Youth Meetings even better? IProved YOUTH MATERIALS i m IAr Prtr A a ri \A/nrLn» i.iitL \/_ ..»L II for Pastors and Workers with Youth Give church name and your position --------- n -----------------

|Box 413-K3, Redondo Beach, Cal.

Editor's Note: Because of the importance of this subject, the following article is printed. T h e Washington office of the National Association of Evangelicals and the Evangelical Foreign Missions Association presented a brief to the Internal Revenue Service late last year requesting a review and, if possible a change in the regulations governing gifts for the support of individ­ ual religious workers by individual donors. This was done at the request of several evangelical agencies whose donors have had their “ designated support” gifts dis­ allowed by the Internal Revenue Service. As the Service checks more individual re­ turns each year, unless changes are made, donors may expect more trouble. We have now had the official reply. The Internal Revenue Service has ruled that “personalized gifts”— including gifts to mission boards earmarked for a particu­ lar missionary—are not deductible for in­ come tax purposes. The ruling, issued on April 9, necessitates certain changes in pro­ cedure for numerous home and foreign mis­ sion organizations. Furthermore, they indicate that they, after thoroughly study­ ing the matter, find no way by which they can permit such giving for religious pur­ poses and yet avoid the abuses the regula­ tions seek to avoid. The ruling read in part: “ Deductions for Federal income tax pur­ poses is a matter of legislative grace. In ■its present form section 170 of the 1954 Code does not permit the deduction, and section 262 of the 1954 Code prohibits the deduction of contributions made to individ­ uals. “A charitable organization may receive contributions which are used for individ­ uals. However, if the contributions are earmarked for a particular individual they are treated in effect as being contributions to the individual designated and are not deductible. “ Contributions or gifts made to a quali­ fying organization even though designated for one or more of its particular projects constitute charitable deductions within the meaning of section 170 of the Internal Revenue Code of 1954.” There is no problem in those cases where individuals give to the general missionary program of their church and where the church in turn designates funds given to a mission board for the support of particu­ lar missionaries, inasmuch as the question of deductibility is not involved in a church designation. In essence, however, gifts of churches as well as individuals are general­ ly understood to be for the work that particular missionaries undertake, not for the personal benefit of the missionaries. It now becomes necessary to make clear the distinction between the missionary and the work which he does for his mission or I other religious organization.

For Easter .

THE LIFE OF OUR LORD

THE NEEDS: Missionaries. Prayer Helpers. THE PLACES: India, W. Pakistan, Iran, Phil­ ippines, E. Africa. THE METHODS: Pioneer Evangelism, Indig­ enous Churches, Bible Institutes, Literature Dispensaries, Orphanages. THE CHALLENGE: Shall they be CHEATED? Write . . . for Free folder describing our Soul-winning work in many foreign lands

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□ YES, we would like without cost or obligation our FREE copy of the 36-page VBS Guidebook. □ Send special $3.40 Introductory Packet (add 30c postage). KBS-30 Name. | Address................................................................. I City................................................. ( ) -State.

I Church.............................................No. in S. S. I Church Address................................................‘ ■ □ Money enclosed $3.70 □ Bill Church

M o o d y I n s t i t u t o o f S c i o n c o Los Angeles 25 California

MARCH, 1960

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