Most gifts to churches are given without designating how the funds should be spent. However, there are cases when donors restrict their donations or give to a designated account. While every donation helps kingdom work, designated gifts can be tricky. Mike Stadelmayer of Church Growth Services joins Thom and Sam, and they discuss some of the nuances around restricted giving.
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- Designated gifts are restricted to a particular project or budget line item.
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- They are a blessing when people give above and beyond their undesignated tithe.
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- Some churches strategically request designated gifts, like mission offerings and capital campaigns.
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- Some members give only designated gifts because of pet projects or discontent with leadership.
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- By law, designated gifts must be used for their intended purposes.
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- Designated gifts to individuals are not tax-deductible contributions.
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- When a church has too many designated funds, givers get confused. And confused givers typically donate less.
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- Some churches use a “one fund” approach to giving.