Are Donation Processing Fees Tax Deductible?
Givers can deduct charitable gifts to churches, but you may occasionally be asked if they can also deduct the donation processing fees.
Every year, Google aggregates the billions of search queries it receives and shows us what was most on our minds for the year. For 2022, the most searched term was Can I change?
Considering all the hoopla around quiet quitting, inflation, the Kardashians, Ukraine, supply chain delays, long Covid and scores of other trending news items and catch phrases, “Can I change…?” is surprising … and encouraging.
If you’re considering a change in your giving system, you may be asking similar questions, like HOW to implement a change. (And maybe a little bit of “How can I SURVIVE a software change?”)
Consider these popular notions about change:
Sometimes we think we’re maintaining status quo but change is still occurring. For example, you were doing business as usual when the “new normal” took over: Attendance and giving dropped. So it’s important to factor in the cost of lost opportunity when deciding not to take a step that has a known net benefit. Staying with your current system may be costing more than you think.
Here’s an extreme example of the cost of lost opportunity due to ineffective technology, but the point applies: Outdated IT (and specifically scheduling software) has been pinpointed as the culprit for Southwest Airline’s catastrophic cancellation of 16,700 flights during the 2022 Christmas weekend.
Widespread severe weather initially played a role, but other airlines rebounded once conditions approved. Southwest did not. Refunds to travelers who were stranded plus the cost of finally overhauling their systems is estimated to approach $825 million. That doesn’t factor in the lost loyalty that may never be fully regained. Or the cost of replacing lost employees. (Source: CSN) Or the untold cost of lawsuits.
You see where this is going. Southwest’s losses seemed to occur all at once, but there were likely other costs being accrued that tragically peaked in one week. In today’s new normal that took several years to fully form, churches can no longer hope something will change for the better around stewardship and generosity on its own. Action (i.e. proactive change) is needed.
This is the conventional wisdom about change and, in many ways, it’s true. There’s a lot of emotional letting go involved, along with resistance to the idea for both yourself and others (i.e. change management and facilitating buy-in).
A good bit of this discomfort occurs in the decision-making portion of a transition. With Vision2, the hardest part is over once you and your team commit. That’s when you see that…
We all actually crave change. We want things to improve. We want growth. We want new things. We like change when it’s positive and on our terms.
Vision2 was created to really solve (in unique and innovative ways) the challenges that churches have. The list of benefits is long and includes:
..and so much more.
Of course, we know the actual switch is something most people dread, but we do everything we can to make it easier:
Or reach out to us with your questions.
Related:
Don’t Let a Vendor Keep You From Switching to a Better Solution
4 Reasons to Upgrade Your Giving System Before Deciding on Your New ChMS or Parish Database
Givers can deduct charitable gifts to churches, but you may occasionally be asked if they can also deduct the donation processing fees.
Launching a stewardship program in 2023? There’s never been a better time!
In a church, at its most organic, donor engagement describes a relationship: Keeping your givers connected to the Body.