I'm a bit confused about whether or not the processing fees borne by a Church or charitable organization must be deducted from a giving statement.
My 501(c)3 accepts charitable contributions via credit card. We do not charge processing fees to the donating individuals but "eat" the cost of the donation.
For example: George donates $2000 to our organization via our online form. We do not charge him a processing fee in order to give us $2000.
Stripe processes the donation and charges us a 2% fee so we actually receive $1960 because his donation was processed by Stripe.
Do we issue a giving statement to George for $2000 or for $1960.
Remember, we didn't charge him a processing fee in order to contribute $2000 to us. We pay the fee in order to make it convenient for George to donate to us.
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$2,000 is the amount that should be documented on the giving statement to George. He donated the full amount to the nonprofit organization and is allowed to claim the full amount. The IRS allows these fees to be deducted for business taxes.
$2,000 is the amount that should be documented on the giving statement to George. He donated the full amount to the nonprofit organization and is allowed to claim the full amount. The IRS allows these fees to be deducted for business taxes.
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