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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.


Note

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:

  1. Gifts to an individual cannot be tax-deductible.
  2. 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. 

Family member who is also a donor

If the gift card is given to the staff by a donor who is also a family member or a very close friend, and the donor (family member/close friend) would likely have given the same gift card regardless of the Reliant missionary’s employment in ministry, then the gift card may be kept by the employee without submitting it to Reliant and does not fall under this policy.

Excerpt

Gift cards that may be kept by missionary

Panel

Gift cards given to a Reliant missionary may be kept if they are $100 or less  and meet all of these attributes:

  • The person/donor has not already given "eligible" gift cards totaling $200 in that year. (If $200 in "eligible" gift cards were already received from that same person during that year, all subsequent gifts cards from that person/donor must be turned in to Reliant.)
  • The Reliant missionary has not already received the maximum of $600 per year in gift cards (excluding family members/close friend donors)
  • Gift card was not given in direct response to a fundraising request or solicitation from the missionary.
  • Was given at typical giving occasions – Christmas, birthdays, special events, etc.
  • Was given by a Reliant ministry partner as a show of affection, goodwill or appreciation towards the missionary
"ELIGIBLE"

A gift card that meets all the above criteria and therefore may be kept by the Reliant missionary.

Goodwill Gift vs Ministry Gift

The 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

Tip
titleFor Example

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

Panel

Gift Cards given to a missionary must be turned in to Reliant if they meet any one of these attributes:

  • When amount of the gift card is greater than $100.
  • If the Reliant missionary has already received the $600 maximum per year in gift cards (excluding family members/close friend donors).
  • If at least $200 in "eligible" gift cards were already received from that same person that year.
  • Was given in direct response to a fundraising request or solicitation from the missionary.
  • When given on a frequent ongoing basis or at regular intervals – monthly, quarterly, etc.
    • Was given in appreciation for services performed by the missionary that are really considered a normal part of their Reliant work duties. (* See Tip below)
    Tip
    titleFor Example
    • A gift card given by their local church for the work the missionary did on a church event or retreat. (Unless the card was $25 and under in value) must be turned in to Reliant. 
    • All gift cards received in lieu of an honorarium, or given as a "thank you" for speaking, teaching, performing a wedding/funeral, or similar duty must be turned into Reliant

    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.

    Info

    Gift Cards Given by a Missionary’s Church

    A gift card $25 and under when given by their local church or another church/ministry may be kept by the missionary without tax implications. A gift card above $25 given by the church where a Reliant missionary works is considered taxable income. 

    Related Pages: 

    Ethical and Legal Gift Requirements