Non-Cash Contributions
Non-cash donations include physical items such as cars, stocks, and cryptocurrency contributions. Like cash donations, the donor must receive written acknowledgment for these gifts.
Implications for Contribution Statements
- Organization name – The legal name of the church or organization receiving the donation.
- Description – A description of the property donated but not the value of the donation.
- Statement of goods or services provided – A statement that the organization provided no goods or services in return for the contribution, other than intangible religious benefits (if applicable).
- Date(s) – The dates of each contribution or the range of dates if summarizing multiple contributions.
If a value is provided on the statement, the acknowledgment should not include the value of non-cash contributions along with the value of cash contributions. These totals should be distinguishable.
Example Language
A church might choose to send letters instead of itemized statements. For example, "Thank you for your generous donation of 0.5 Bitcoin on June 15, 2025. No goods or services were exchanged for this gift. For tax purposes, please consult with a qualified tax professional to determine the fair market value of your donation." This complies with IRS guidelines and provides everything the donor needs for tax purposes.
Non-Cash Gifts in MinistryPlatform
Churches can track non-cash donations in MinistryPlatform using the Non-Cash payment type.
Entering a value for the non-cash payment will reduce the amount owed on a pledge. The value is not shown on the contribution statement.
Rules for Stock Donations
Publicly traded stocks do not require appraisals; however, the acknowledgment must still include a description of the stock, such as the number of shares and the company name. If the charity sold the stock after receipt, the donor's deduction is based on the fair market value (FMV) at the time of the donation, not the sales proceeds.
In MinistryPlatform, churches can track stock donations using the Non-Cash payment type. Or, to evaluate these donations separately from other non-cash donations, use the Stock payment type. This can help churches analyze their donation sources and better understand the giving patterns of their donors.
Rules for Crypto Donations
The IRS considers cryptocurrencies as property, following the same rules as other non-cash contributions.
In MinistryPlatform, churches can track crypto donations using the Non-Cash payment type. Or, to see these totals separately, use the Crypto payment type.
By default, the crypto and stock donation amount is omitted from the statement.
Retaining Documentation
The charity should retain records of the donation, including the date received, the description of the asset, and any supporting documentation. This helps ensure proper tracking in case the IRS audits the donor and requests details about the transaction.