Arizona Southern Baptist Convention

Spanish Portraits, Nov.-Dec. 2009.

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On Friday, January 22, 2010, President Obama signed into law legislation passed quickly by both the Senate and the House (H.R. 4462- See Text Below) which allows taxpayers to claim a charitable deduction in 2009 for cash (text message, check, credit card or debit card) gifts given for "relief of victims in areas affected by the earthquake in Haiti" made in the beginning of 2010 . (Read IRS notification)

Any gifts made after January 11, 2010 and prior to March 1, 2010 may be treated as if they were made on December 31, 2009. Therefore, a donor to a local church or state convention may claim a deduction in either 2009 or 2010 for any gifts made from January 12-February 28, 2010 for Haiti relief.

What does this mean to the church/convention or other charitable organization?
1. Notify your Members: Local churches, convention or other charities that are accepting contributions for Haiti Earthquake Relief should notify their members of this immediate tax benefit which allows any gifts given after January 11, 2010 but before March 1, 2010 to be claimed as either a 2010 or 2009 tax deductible contribution. (Notices could be made in the weekly bulletin, newsletter or organizational website)

2. Issue Two Month Giving Statements (Jan/Feb 2010): Practically, a church/convention should issue a "short" charitable giving statement to individual donors, listing the amount and date of each contribution from January 1 -February 28, 2010 as it relates to gifts for relief work in Haiti. A short notice should be included on the giving statement (below the normal contribution statement verbiage) similar to the following:
"According to the IRS, any donations for "relief of victims in areas affected by the earthquake in Haiti" received between January 12, 2010 and February 28, 2010 may be claimed as a charitable deduction for income tax purposes in either 2009 or 2010, but not both."

3. 2010 Year End Giving Statements: As a service to their members, churches/conventions should include the wording above with their 2010 year end giving statements so donors can ensure that they do not accidentally deduct their contributions twice.

Text of Bill HR 4462
To accelerate the income tax benefits for charitable cash contributions for the relief of victims of the earthquake in Haiti.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. ACCELERATION OF INCOME TAX BENEFITS FOR CHARITABLE CASH CONTRIBUTIONS FOR RELIEF OF VICTIMS OF EARTHQUAKE IN HAITI. (a) IN GENERAL. -- For purposes of section 170 of the Internal Revenue Code of 1986, a taxpayer may treat any contribution described in subsection (b) made after January 11, 2010, and before March 1, 2010, as if such contribution was made on December 31, 2009, and not in 2010.

(b) CONTRIBUTION DESCRIBED. -- A contribution is described in this subsection if such contribution is a cash contribution made for the relief of victims in areas affected by the earthquake in Haiti on January 12, 2010, for which a charitable contribution deduction is allowable under section 170 of the Internal Revenue Code of 1986.

(c) RECORDKEEPING. -- In the case of a contribution described in subsection (b), a telephone bill showing the name of the donee organization, the date of the contribution, and the amount of the contribution shall be treated as meeting the recordkeeping requirements of section 170(f)(17) of the Internal Revenue Code of 1986. Source: Ways and Means Committee

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