DESIGNATED GIFTS POLICY

            Individuals can give designated gifts for the ministry of the church.  However, the designated fund must be established before the church receives the cash or cash equivalent designated gift.             

The process of establishing a designated fund is as follows:

1. Any member of the church may request the establishment of a designated fund.
2. The member must present a request to the finance committee.  The request must include the following requirements.  A)  The purpose of the fund and how it furthers the mission of the church must be stated. B) Procedure on how the fund will be spent. C)  Procedure on how the fund can be closed, and D) A procedure on how to disperse any money left in the fund after the fund is closed.
3. The finance committee shall approve or disapprove the establishment of the requested designated fund and make their decision known to the church.
4. Love offerings should be approved by the Senior Pastor, and/or the Agape Love Fund Committee prior to the church receiving any contributions.

Designated funds created before the church adopted this new written policy will not be impacted by the new policy.  The church will continue to operate those under the original terms (written or verbal) that were assumed when the existing designated funds were established.  This policy will apply only to new designated funds created after the adoption of this policy.

“Designated contributions” which include love offerings, are contributions made to the church with the stipulation the donations are to be used for a specified purpose.  Designated gifts cannot include a contribution to a budget line item. As a general principle, a donor can receive a charitable contribution credit on their statement from the church if the designated contribution is handled properly.  Designated funds cannot be spent on unintended purposes.  Expenditures cannot be made from a designated fund that has no money.  The church shall not spend money from a designated fund that causes the fund to have a negative balance.

Designated gifts received by the church for an “unapproved” designated fund will be returned to the donor unless the donor is willing to change the gift to an “approved” designated fund or to the general fund.  The finance committee may move money from a designated fund to another designated fund or the church general fund when it appears that those monies may never be spent for their intended purpose if a formal method of closing the fund was not established.

If the designated gift is a gift of property, not cash or cash equivalent, then the finance committee reserves the right to use the property for the purpose of the church.  The finance committee will try to honor the intention of the donor, but the finance committee reserves the authority to use or dispose of the property that best fosters the church’s ministry.

Contributions designated to a group or organization within the church (such as a Sunday School class) for that organization’s exclusive use and under its total control is not a deductible contribution to the church.  The church will not include such contributions on that person’s contribution statement.  The same is true for contributions made directly to any person including staff members, and also contributions made to the church for the benefit of a person or group that is not an approved love offering or designated fund. Contributions made to a specific person within an approved designated fund cannot be accepted. 

Love Offerings received for a staff member must comply with IRS regulations and shall be considered as income to that person.