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Designated Contributions

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Question:

 If I make a contribution to my church and make a note on the envelope that it is for Vacation Bible School, I was told it is not a tax deductible contribution. Is this true and why?

 Answer:

 Generally, contributions to support the general ministries and programs of the church are tax deductible. If the church VBS program requires a fee for materials or other costs, then payment of such a fee for oneself or an identified individual beneficiary will not be deductible. These contributions fall under the quid pro quo rules of the Internal Revenue Code (i.e., the donor received goods or services in exchange for the contribution). Unless these conditions apply, the gift should be deductible.
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