Do You Know The $250 Rule?

As your church prepares to gather all donor contribution information for 2015 to meet the January 31st, 2016 mail out deadline, there’s one important question to ask if you are in compliance with the IRS. “Do You Know the $250 Rule?”

The $250 rule simply states that for each individual donation from a single donor that is equal to or greater than $250 a separate receipt for each donation is required. If you have a donor in your church who typically gives $250 or more each time they give, they must receive a separate receipt for each $250 or more donation. You’re probably freaking out right now because this rule most likely hasn’t been practiced in your church last year.

First off, take a deep breath because there is an alternate way to comply with this rule. For those donors who did give any/all single donations of $250 or more for 2015, you can give them an itemized listing of ALL there charitable contributions for 2015. Typically, churches have just given a summary total of giving for each donor. This is no longer acceptable to the IRS for the donor to receive tax deductible credit on their tax return. They must receive a receipt from the charitable organization that reflects every contribution, especially all that are $250 or more.

You can get more information from the IRS site at, or contact the district office via email:, or phone: (512) 353-8595 for more information and clarification.