What portion of a donation made through Faithlife Giving is tax deductible?

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When a donation is made through Faithlife Giving, the full amount of the gift is reported to the giver on their gift receipts and giving statements and the complete gift can be claimed as a tax deduction. A giver’s tax deductibility is based on giving to a church; not on how the church uses the funds.

Your church will pay processing fees to Faithlife for any gifts you receive. When you enable the giver covered fees feature, your givers have the option to increase their gift by an amount equal to the fees the church would pay. This results in your church realizing the full amount of the intended gift after payment of the fees.

The giver’s entire gift, including the portion denoted to cover the fees, is still tax deductible. This is because the portion of the gift that covers the fees was still donated to the church and deductibility is based on giving to a nonprofit, not how the nonprofit chooses to use the funds.

 Ultimately, whether a donor decides to deduct the fees as a donation on their tax returns is their option and Faithlife does not provide tax advice. Please consult your local tax professional about what portion of the full donation amount can be claimed as a charitable contribution.

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