Donors of non-cash gifts maybe be entitled to write-offs and should refer to IRS Publication 526 for further details regarding possible deductions.
The question brings up greater concerns than whether the donors can deduct contributions. For example:
- Who takes responsibility for any legal compliance or liability concerns?
- Does the ministry hold a Seller's Permit from the State in which it operates?
- Is the ministry complying with all IRS and State employment laws for withholding taxes and other regulations?
- Who is responsible for income taxes on profit, if it happens to fall under the classification as Unrelated Business Income?
- be described both as an IRC Section 501(c)(3) charitable organization and as a public charity under IRC Sections 509(a)(1), (2) or (3);
- be affiliated with a church or convention or association of churches;
- and receive financial support primarily from internal church sources as opposed to public or governmental sources.