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On occasion, Reliant field workers may receive gift cards from friends and relatives who are also MTD donors. Examples of these occasions may be birthday or holiday gifts normally exchanged with close relatives and friends. While these types of gifts may occur in the normal course of life, when the gift-giver is also a Reliant donor, it is important to bear certain things in mind:
- Gifts, including gift cards, given to a Reliant field worker in the normal course of life (such as the example cited above) may be kept by the field worker.
- Personal gifts, including gift cards, are not donations to Reliant. They should not be represented as Reliant donations, and they are not tax-deductible like other donations to MTD accounts and other Reliant ministry funds.
- Personal gifts should never be given or received in lieu of normal donations to field workers' MTD accounts. For example, gifts should not be given and received:
- At regular intervals (e.g., monthly or quarterly)
- In response to a fundraising request
- In significant amounts exceeding the value of gifts typically exchanged in the normal course of life
- Gift cards are considered cash equivalents and may have personal income tax implications when given by field workers' donors. While Reliant does not get involved in the giving and receiving of personal gift cards given to field workers in the normal course of life, as with other personal income tax matters, we encourage you to consult your tax advisor if you have any questions or concerns on this subject.
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Key Change to Standard: Reliant employees are no longer required to send gift cards they receive to Reliant for processing as an anonymous gift. |
Summary
Occasionally Reliant missionaries (both employed and associate missionaries) are given gift cards by ministry donors, their local church, or even by people they are ministering to. However, both legal and ethical factors govern the receiving of gift cards, and so our missionaries must be aware of specific standards. Since the IRS treats gift cards as cash, we also treat gift cards as cash within the following guidelines.
Some gift cards are required be sent to Reliant for processing as an anonymous gift. Others likely do not have to be submitted—e.g. a card $100 and under sent at Christmas. Required details are below.
Reason for policy
Missionaries receiving gift cards can be an administrative and ethical challenge. For example, the IRS has rules regarding gift cards because it can be seen as taxable income (de minimis fringe benefits). For Reliant specifically we note that:
- Gifts to an individual cannot be tax-deductible.
- Reliant has an integrity standard for our missionaries—we do not want the appearance that they are personally benefiting through their service as a missionary or minister.
Therefore Reliant desires to be prudent and conservative when determining whether these gift cards should be reportable and turned into Reliant. Many of these gift cards are given to missionaries at Christmas, but not exclusively.
Gift cards given to a missionary for the performance of work would be taxable. However, the majority of gift cards are given for reasons other than the performance of work. Instead they’re given out of affection, respect, admiration, appreciation or as a show of goodwill towards the missionary.
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Gift cards that may be kept by missionary
"ELIGIBLE"A gift card that meets all the above criteria and therefore may be kept by the Reliant missionary. Goodwill Gift vs Ministry GiftThe following are examples of how some common attributes that might demonstrate affection and goodwill gifts (which might be kept), versus a ministry motivation for giving the gift card (which should be sent to Reliant) | ||
Affection/Goodwill/Appreciation Gift | Ministry Gift | |
Irregularly, random | Monthly, quarterly | |
Only at typical gift giving occasions (Christmas, birthday, child graduation, etc.) | Other times (particularly if relates to a ministry event or service performed) | |
Amount too small to provide meaningful financial support for recipient | Substantial amount | |
No request made for gift | Response to fundraising request for support | |
Long-term relationship or family | Recent acquaintance while doing deputized fundraising | |
Accompanied by letter or card expressing affection or care for missionary or family member | Accompanied by letter expressing appreciation for their ministry work |
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A family member sends you a $200 gift card as a birthday gift, and has traditionally done so every year including the time before the missionary began employment with Reliant. This gift card may be kept. (A good rule of thumb question to ask is "Would this person still be giving me this gift card, even if I did not work in ministry or as a missionary?") |
Gift cards that must be turned in to Reliant
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Gift Cards given to a missionary must be turned in to Reliant if they meet any one of these attributes: |
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Treatment of gift cards turned in to Reliant
All gift cards that are turned in to Reliant by missionaries will be recorded as a charitable contribution to Reliant under the category of "anonymous donor".
- The contribution will be designated and credited to the MTD account for which the missionary is responsible for (who received the gift card).
- The standard applicable administration fee will be applied to the gift (usually 12%).
- The gift card will be kept on file to be later used by the Reliant office for ministry purchases in the normal course of business.
As with all Reliant policies, if a missionary has any questions they can ask their supervisor or contact the Reliant office.