BP 11122023 129pm - Flipbook - Page 85
maintained at the parish for all project funding decisions and be available for review by the
parish finance council, pastor, internal auditors, and donors. Formal documentation should be
created to substantiate any on-going relationship with a foreign parish.
( ) TAX LETTERS: may only be provided by a legitimate 501c3 organization, or the parish
business office; any tax letters generated by a parish business office must exclude donations
made to benefit specific individuals for travel costs, as described above.
( ) DONOR INTENT RESTRICTIONS: the parish management team should closely monitor the
use of cash donations from parishioners, particularly as to intent of the donors, and when such
donations are tax-deductible; clearly judgment is involved in monitoring the use of funds to
make sure that donor intent is appropriate;
( ) REQUIRED SITE VISITS: tax-deductible projects that are managed by parish ministry
requires periodic visits to the international charity project site. Projects funded solely through
501c3 organizations do not require such visits.
( ) OTHER GUIDANCE: IRS Publication 4221-PC Compliance Guide for 501c3 Public
Charities, and the IRS web site for Charities and Not for Profits Charities and Nonprofits |
Internal Revenue Service (irs.gov). In addition to tax law, parishes should also be aware of the
US. Department of the Treasury Anti-Terrorist Financing Guidelines, and the USA Patriots Act,
which prohibit certain international funding endeavors.
( ) USCCB OPTIONS: as an alternative to the burdensome work of financial oversight by a
parish, the USCCB has extensive international charity programs all over the world, often
targeting particular countries, and initiatives, where many parishes contribute to fund specific
projects overseen and managed by the USCCB’s efforts. By going through the USCCB, such
donations are given tax-deducible status by the USCCB.
We recommend that parishes with any established relationships with international charitable
efforts review these requirements and consider the implications of inappropriate use of funds that
might contribute to noncompliance with IRS tax laws and thereby jeopardize a parish’s 501c3
status. Please direct any other questions about this to the Finance Office of the Chancery.
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