One job of the Louisiana Baptist Foundation is keeping Louisiana Baptists informed and updated regarding tax advantages of charitable giving.
One job of the Louisiana Baptist Foundation is keeping Louisiana Baptists informed and updated regarding tax advantages of charitable giving.
I think we are to be “as wise as serpents” when it comes to paying taxes and “render unto Caesar ‘only’ what belongs to Caesar.” But, in this column I want you to stop and consider if modern day Christians put too much emphasis on the “tax benefit” allowed by the IRS and not enough on God’s command to give.
People pass up opportunities to meet the needs of others: friends, a stranger or even a family member, because no tax deduction exists for that gift. Technically, the IRS does not allow an income tax deduction for gifts to an individual.
Sometimes attempts are made to donate through a tax exempt organization that the IRS recognizes as a 501c3. A person will then “encourage” the organization to help the individual they desire to help. This is an elaborate process to try and circumvent the IRS rules.
Also, individuals may limit their annual charitable gifts based on the deduction limits allowed by the IRS. Do you think the “Good Samaritan” stopped to get a receipt for the medicine, room and board he provided for the stranger in need or did he stop to consider if he had reached his annual limit on charitable giving before he helped?
Even if the Samaritan had gotten a receipt, I don’t think the Roman tax collector would have cared. If you see a need and are motivated to give to someone – just do it, and don’t worry how it affects the bottom line on your Form 1040. Just consider any tax deduction as Lagniappe, as we say here in Louisiana.
To help put tax deductions in perspective, it might be interesting to know that the United States did not enact a federal income tax until 1862. It was instituted to help pay for the Civil War.
After 10 years, the income tax was repealed. Twelve years later, in 1894, the tax was revived and then declared unconstitutional a year later by the U.S. Supreme Court. A process was started to get three fourths of the States to ratify an amendment to the U.S. Constitution to allow a federal income tax. In 1913, Wyoming became the 16th state to ratify the amendment and thus started the “modern” IRS. It was not until 1917 that charitable donations were tax-deductible.
Realize that throughout all of history God, has commanded man to give. It has only been in the last 90 years that the government of the United States has allowed a tax benefit for charitable giving. Don’t get so caught up in following the IRS rules about giving that you forget to obey God’s rules concerning giving.
Don’t give in order to receive a tax deduction. Give to be obedient to God and help others in need. God’s command to give is not contingent on getting a tax-deduction.
God even requires us to give to our enemies. (Now, there ought to be a tax break for that!) Luke 6:30 says “Give to everyone who asks of you.” In that same chapter, Jesus tells us, “Give and it will be given to you. A good measure, pressed down, shaken together and running over. For with the same measure you use, it will be measured to you.”
According to His Word, the benefit and blessing of obeying God far outweigh the tax benefit allowed by the IRS.