Sample Illustration
Benevolence Fund Policy of The (Name of Church) Church

The [name of church] Church, in the exercise of its religious and charitable purposes, has established a benevolence fund to assist persons in financial need. The church welcomes contributions to the fund. Donors are free to suggest beneficiaries of the fund or of their contributions to the fund. However, such suggestions shall be deemed advisory rather than mandatory in nature. The administration of the fund, including all disbursements, is subject to the exclusive control and discretion of the church board. The church board may consider suggested designations, but in no event is it bound in any way to honor them, since they are accepted only on the condition that they are merely nonbonding suggestions or recommendations. As a result, donors will not be permitted to recover a designated contribution on the ground that the church failed to honor the donor’s designation.

Donors wishing to make contributions to the benevolence fund subject to these conditions may be able to deduct their contributions if they itemize their deductions on their federal income tax return. The church cannot guarantee this result, and recommends that donors who want assurance that their contributions are deductible seek the advice of a tax attorney or CPA. Checks should be made payable to the church, with a notation that the funds are to be placed in the church benevolence fund.

Richard D. Locke is a certified public accountant with over forty years of experience. His firm, Locke & Associates, P.C., is a full service accounting firm which specializes in taxation and nonprofit services. The firm has six certified public accountants servicing approximately one thousand clients in the United States and thirty countries. You can reach Richard D. Locke, CPA at 918-488-0880.