Do I have to report the gifts/donations as income?

[shackleford]

What is the name of your state? Texas.

I started a ministry project, [url]http://www.freebibleproject.com[/url]. It is not a non-profit organization, and I do not intend to make it one. Basically, I give away free Bibles to people who request it. If someone donates financially to the project, do I have to report it as income to the government?

[tranquility]

No. Since any "donation" is from disinterested generosity with no benefit gained to the giver, it is a gift. However the donation cannot be reported on the giver's tax return as a deduction and you better never imply in any way they can or it will be fraud. Also, the state may have rules regarding such matters.

[shackleford]

Originally Posted by tranquility

No. Since any "donation" is from disinterested generosity with no benefit gained to the giver, it is a gift. However the donation cannot be reported on the giver's tax return as a deduction and you better never imply in any way they can or it will be fraud. Also, the state may have rules regarding such matters.

I will absolutely make it clear it is not a non-profit organization. I'm trying to get fiscal sponsorship with my church, which will allow the people who donate FOR the FreeBibleProject, in the State of Texas, to donate to a non-profit organization and have tax deductibility. Thank you for the clarification.

Where should I research the state laws concerning gifts in Texas?

[efflandt]

Has your non-profit organization incorporated with the state and have you applied for tax-exempt status with the IRS? If not, then donations would not be tax deductable and anyone gifting you more than the annual gift limit would need to file a gift tax form with their federal income taxes (although no tax would be due unless over the unified lifetime credit).

You might try a Google search for something like "legal requirements non-profit organization".

[shackleford]

Originally Posted by efflandt

Has your non-profit organization incorporated with the state and have you applied for tax-exempt status with the IRS? If not, then donations would not be tax deductable and anyone gifting you more than the annual gift limit would need to file a gift tax form with their federal income taxes (although no tax would be due unless over the unified lifetime credit).

You might try a Google search for something like "legal requirements non-profit organization".

It is NOT a non-profit organization. I decided not to go that route since doing so is heavily involving.