Ensuring donations are logged correctly is essential for providing accurate donor tax statements and maintaining clean financial records. Subsplash Giving supports a variety of giving methods, and how a gift is entered determines how it appears in reports and on donor statements.
Below is an overview of how different donation types are handled within Subsplash Giving and how they impact tax statements.
This article is for general informational purposes only and should not be considered tax or legal advice. For questions about the tax treatment of contributions, we recommend consulting a qualified accountant or tax professional, preferably one experienced with nonprofit organizations.
Tax-Deductible Giving Methods
The following giving methods are considered tax-deductible and will always appear on a donor’s tax statement when processed through Subsplash Giving:
Card donations
ACH donations
Check donations
Cash donations
Other donations
This category includes donations made directly to your church through third-party platforms such as Venmo, Zelle, Cash App, or PayPal.
Other Contribution Types
Subsplash Giving also allows certain contribution types to be entered into Batches as soft credit gifts. These gifts appear in the donor’s giving history, count toward pledges if given to a fund tied to a campaign, are included in reporting, and may optionally appear in a separate section of the donor’s tax statement, depending on how your organization chooses to display them. These contribution types include:
Donor-Advised Funds (DAFs)
A Donor-Advised Fund (DAF) is a charitable giving account managed by a third-party organization. Donors contribute to the fund and later recommend grants to nonprofits, such as your church.
Because the Donor receives their tax deduction when contributing to the DAF, not when the grant is issued, these gifts are typically logged for record-keeping and donor visibility purposes. Some churches choose to send a separate thank-you letter to acknowledge the gift, though this is optional.
Qualified Charitable Distributions (QCDs)
In the USA, a Qualified Charitable Distribution (QCD) allows individuals aged 70½ or older to donate up to $105,000 annually directly from their IRA to a qualified charity, such as your church. This distribution satisfies Required Minimum Distributions (RMDs) without counting as taxable income.
The IRA owner will receive Form 1099-R from their IRA trustee showing all IRA distributions, including Qualified Charitable Distributions. While some churches send a separate acknowledgment letter, this is not required.
Cash Equivalents (Stock, Bonds, Crypto)
Donors can give cash equivalent gifts such as publicly traded stocks, bonds, or cryptocurrency directly to a church. Stock and bond gifts are transferred in kind, while cryptocurrency donations must be valued at fair market value by a CPA.
If cryptocurrency is received through Engiven, the donation is automatically converted to USD at the time of the gift, simplifying valuation. In these cases, Engiven automatically generates and sends Form 8283 to the donor.
In-Kind Donations (Property, Goods, Services)
An in-kind donation is a non-cash gift, such as property, equipment, vehicles, or professional services. These gifts can provide meaningful support to your ministry while offering donors potential tax benefits based on fair market value.
For In-Kind Donations & Cash Equivalents, churches are required to send a letter of acknowledgement in order for the donor to claim a tax deduction.
Keep in mind, the exact dollar amount should not be included on acknowledgment letters or tax statements. Any valuations entered are for administrative purposes only and are not donor-facing.
Other (Non tax deductible)
This category is used for uncommon scenarios where a donor directs funds to your church but receives tax credit through another organization. For example, a donor may use a separate nonprofit to route funds to your church. To be clear, this category does not cover payments, which is an exchange for goods & services.
These gifts can be recorded for visibility and reporting purposes but are not considered tax-deductible through your organization.