Following is a helpful refresher on how gifts sent for special occasions, medical needs, insurance premiums, other personal gifts, as well as travel funds are entered for missionaries.

Personal Gifts from Individuals, Family, Churches, and Other Organizations

While we, as a non-profit ministry, discourage missionaries from intentionally raising personal funds, your family, friends, and even churches may want to send you personal gifts throughout the year.

To avoid tax liability on gifts, please encourage your family and friends to send personal gifts directly to you via another method of gifting.

For the personal gifts that come through our office, missionaries typically have the choice of whether to use these funds for ministry or for personal use. Again, it is important to remember that if you choose to use these funds for personal purposes, you will incur a personal tax liability on those funds.

Examples of Personal Gifts (including, but not limited to, the following)
• Special Occasion Gifts (Birthday, Anniversary, Christmas, etc.)
• Medical Deduction Reimbursements (insurance premiums, insurance increases, etc.)
• Medical Expenses
• Funeral Expenses
• Tuition (elementary, secondary, or college for children)
• Tuition (for missionary and/or spouse when tuition is not required for ministry)
• Tuition (for missionary and/or spouse when tuition is required for ministry)

We process personal gifts in two ways:

1) Deposit to Your Ministry Account (0101)
• Medical Deduction Reimbursements (BBFI Insurance)
• Tuition (for missionary and/or spouse when tuition is required for ministry)
• Special Occasion Gifts (Birthday, Anniversary, Christmas, etc.)

These personal gifts are deposited to your Ministry Account because it is your choice whether to use these funds for ministry or for personal purposes.

If you choose to use any of these types of gifts for personal purposes, you will have a tax liability on these gifts, as the IRS deems that you are getting these bonuses because of your “job”.

In the eyes of the IRS, this is like an employee in the USA – even a pastor or church staff member – getting a Christmas bonus on their paycheck, and it is considered taxable income for that pastor or staff member.

If you choose to have Wendi in the Finance Office transfer funds from your 0101 account to your personal account, those gifts will then be marked as a *B3 – Personal Offerings Retained and will become taxable to you at that point.

If you initially choose to receive these funds for ministry, and later use them for personal use, you MUST report them on your Quarterly Report as a *B3 – Personal Offerings Retained.

Your donors will not get a tax-deductible receipt for any contribution they have designated for personal purposes.

2) Deposit to your Personal Account (0201)
• Medical Expenses
• Funeral Expenses
• Tuition (elementary, secondary, or college for children)
• Tuition (for missionary and/or spouse when tuition is not required for ministry)
• Funds entered into your 0201 account automatically have *B3 – Personal Offerings Retained applied to them.

Again, your donors will not get a tax-deductible receipt for any contribution they have designated for personal purposes.

Funds Received for Travel

Each missionary now has a Travel Fund available to them.
• Unless you have requested otherwise, gifts to the Travel Fund will be held in our office in your 3000 Travel Reserve account. This allows missionaries to save funds for future furlough expenses, airfare, hotels, visas, etc.
• When you are in the States (or are traveling for deputation), you may contact Wendi in the Finance Office to request the existing funds be deposited and/or have the hold removed from your Travel Fund for future funds.
• Likewise, once you have returned to the field, you can request the hold be re-instated on your Travel Fund.

If you need further guidance on any of these points, please do not hesitate to reach out to our office!

“May every penny that is given be handled with integrity and spent with wisdom.” – C. Swindoll