Support Missionary Work: Global Frontier Missions

Give Non-Cash Gifts and Gifts-in-Kind to GFM

Support Global Frontier Missions by giving non-cash gifts:

There are many things you can give to a ministry apart from cash. Examples of a non-cash gift of gifts in kind (GIK) are:

Computer, office equipment or supplies
Literature and books
Automobiles
Tools and building supplies

It is important when you consider making a non-cash gift that you are confident the gift will be used in the ministry. According to tax laws, personal gifts such as a birthday gift or Christmas gift are not tax deductible in any form (cash or non-cash). Gifts of equipment or other goods used for personal and not mission purposes are considered personal gifts. To be deductible, a non-cash gift must be an item which could be purchased with mission funds and the use of it is controlled by mission policies.

Some non-cash gifts are not deductible for other reasons. The IRS rules regarding non-cash gifts can be complex and confusing.

Here are some rules for non-cash gifts.

Professional Services

Professional services can be provided by, but are not limited to a doctor, dentist, lawyer, mechanic or carpenter. We appreciate the generosity of those who provide such services, but tax rules do not permit a deduction for the professional's normal service fee or charge. Only out-of-pocket costs related to providing the services may be deducted. For example, a mechanic may change the oil in a missionary's automobile. The mechanic's fee for such a service is not deductible, but the oil, oil filter, or other materials placed in the automobile are deductible.

Reduced-Price Merchandise or Property

You may charge a missionary reduced prices for merchandise or materials. The "bargain-sale method" is used to determine the value of such a gift. Subtract the difference between the fair market price and the sale price. You are permitted to report the difference as your gift amount. Special rules apply if you are a dealer in the bargain sale property. Keep accurate financial records from the vendor from which you purchased the materials, and keep a copy of the writing that acknowledges the actual sale price paid by the missionary. Although GFM will issue a letter acknowledging the transaction, that letter will only acknowledge the price paid by the missionary and not evidence the amount of your gift.

Rent-Free or Reduced Housing

You may not deduct reduced rent or rent-free housing you provide to an individual or family. However, you may deduct out-of-pocket expenses for the property you are renting. For example, you may deduct lawn care, snow removal, property taxes, gas or heating costs, repair costs, etc. Remember to keep accurate financial records substantiating your out-of-pocket expenses. If you are unsure about the validity of your deduction, check with your accountant or tax advisor.

GFM cannot issue an official cash receipt or declare a value for any contributed property or materials. In accordance with IRS regulations GFM will provide a "gift-in-kind" letter used to acknowledge receipt of your gift. However, the IRS rules require that you provide adequate substantiation for the value of your gift. In some cases a written appraisal from a person or entity with expertise in calculating the value of such property may be requested.

How do I obtain a gift-in-kind letter of donation?

In order for GFM to supply you with a gift-in-kind letter or letter of donation, you will need to provide, in writing, the following information:

Your name and address
Description of donated property: Be specific. Provide the age/year, mileage, model, vehicle ID number or serial number and other special identifying information. Include the condition of the contributed property when appropriate.
Date you delivered the property to the missionary or GFM.
Name of missionary and/or purpose for which the property will be used in the ministry.
If you provide an estimated value, GFM cannot list the value in its letter.

Global Frontier Missions is a charitable entity, organized under Section 501(c)(3) of the Internal Revenue Code, and it is eligible to receive tax deductible contributions. We encourage all persons who are interested in charitable tax deductions to consult with their tax advisors regarding specific items donated to GFM. We will provide contributors with receipts for tax purposes.