Are Donations Given for a New Minister of Music Tax Deductible?

Understand the tax implications of donations for individual ministers and how to ensure compliance with IRS rules for deductibility.

Vonna Laue, CPA
Bio
AI Optimized
Bio

Last Reviewed: January 24, 2025

Q: Our church would like to hire a new minister of music, but tithes and offerings will not cover it. Members are making special contributions to the budget for the purpose of providing a salary for a future minister of music. Are these contributions tax-deductible for donors?

Yes, these contributions can be tax-deductible as long as they follow IRS rules. Donations cannot be specified for an individual, but they can be designated for a ministry purpose such as funding the position of a minister of music.

IRS Guidelines for Tax-Deductible Donations

The IRS distinguishes between donations intended for an individual and those intended for a church’s ministry or mission. To ensure contributions for a new minister of music are tax-deductible:
  • Donations must not be earmarked for an individual: Contributors cannot specify their gifts for a particular person, such as a specific candidate for the minister of music position.
  • Funds must serve the church’s mission: The church should use the donations for the purpose of creating and funding a minister of music position, with the funds fully under church control.
  • Complete control of funds: The church must retain full discretion and control over the allocation of the donated funds.

Best Practices for Churches

To comply with IRS rules and maintain donor confidence, churches should follow these best practices:

1. Clear Communication

Inform donors that their contributions will support the creation and funding of a new minister of music position. Avoid language that suggests the funds are for a specific individual.

2. Proper Documentation

Provide each donor with a written acknowledgment of their gift, including:
  • The amount contributed.
  • A statement that no goods or services were provided in exchange for the donation, if applicable.

3. Retain Control of Funds

The church must have full discretion over how the funds are used. If funds exceed the amount needed for the minister of music position, the excess should be allocated to other church purposes.

Key Considerations for Donors

While donors may wish to support a specific individual, it is important to structure contributions in a way that aligns with IRS rules. Donations intended for the church’s mission, not for an individual, will remain tax-deductible.

For more information, review the IRS guidelines on charitable contributions or consult resources from the Evangelical Council for Financial Accountability.

FAQ: Taxes on Donations to Individual Ministers
  • Can donations be designated for a specific individual?
    No, contributions specified for an individual, such as a particular minister, are not tax-deductible.
  • Are donations for a new ministry position tax-deductible?
    Yes, as long as the donations support a ministry purpose and are fully under the church’s control.
  • What documentation do donors need for deductions?
    Donors must receive a written acknowledgment from the church, stating the amount and confirming no goods or services were received in return.
  • What happens if donations exceed the intended purpose?
    Excess funds must be allocated to other church purposes to maintain their tax-deductible status.
Vonna Laue has worked with ministries and churches for more than 20 years. Vonna was a partner with a national CPA firm serving not-for-profit entities through audit, review, tax, and advisory services. Most recently, she held the role of executive vice president for a Christian ministry that works to enhance trust in the church and ministry community.
ChatGP4o, Team Gloo Workspace

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

Related Resources

Visit Store

ajax-loader-largecaret-downcloseHamburger Menuicon_amazonApple PodcastsBio Iconicon_cards_grid_caretChild Abuse Reporting Laws by State IconChurchSalary Iconicon_facebookGoogle Podcastsicon_instagramLegal Library IconLegal Library Iconicon_linkedinLock IconMegaphone IconOnline Learning IconPodcast IconRecent Legal Developments IconRecommended Reading IconRSS IconSubmiticon_select-arrowSpotify IconAlaska State MapAlabama State MapArkansas State MapArizona State MapCalifornia State MapColorado State MapConnecticut State MapWashington DC State MapDelaware State MapFederal MapFlorida State MapGeorgia State MapHawaii State MapIowa State MapIdaho State MapIllinois State MapIndiana State MapKansas State MapKentucky State MapLouisiana State MapMassachusetts State MapMaryland State MapMaine State MapMichigan State MapMinnesota State MapMissouri State MapMississippi State MapMontana State MapMulti State MapNorth Carolina State MapNorth Dakota State MapNebraska State MapNew Hampshire State MapNew Jersey State MapNew Mexico IconNevada State MapNew York State MapOhio State MapOklahoma State MapOregon State MapPennsylvania State MapRhode Island State MapSouth Carolina State MapSouth Dakota State MapTennessee State MapTexas State MapUtah State MapVirginia State MapVermont State MapWashington State MapWisconsin State MapWest Virginia State MapWyoming State IconShopping Cart IconTax Calendar Iconicon_twitteryoutubepauseplay
caret-downclosefacebook-squarehamburgerinstagram-squarelinkedin-squarepauseplaytwitter-square