The new year is upon us, and it's now time to prepare Tax Statements for your church. Before diving in, here's a checklist to ensure you make the most of this important task.

Please note: This is not tax advice. Consult a tax professional or other qualified advisor for guidance.

Steps for an Efficient Tax Statement Season

1. Clean Up Your Database

   • Begin by tidying up your church's database. Avoid the hassle of donors receiving multiple statements due to accidental multiple accounts. This not only burdens the donor but also creates unnecessary work for your church admin.

   • Cleaning up your database is not just for tax season; it sets a solid foundation for your church management and communication for the entire year.

   • To clean your database, manually check for and merge duplicate users, and archive inactive ones. Additionally, consider sending an email or text blast inviting members to update their details.

2. Ensure Consistency Across Records

   • If you use multiple platforms for tracking donations, designate one as the master record keeper. This platform should be used for sending out end-of-year tax statements.

   • Consider this an opportunity to consolidate platforms. Platforms like Planning Center Online or Tithely offer lower fees and serve as comprehensive Church Management Systems (ChMS), handling donations and overall church management.

   • Download and save a CSV file of your records to maintain a 'master source of truth' for your church's financial data.

3. Check Government Requirements

   • Review any changes in government tax requirements to ensure compliance. Engage with tax professionals to get the most current and accurate information.

4. Send Tax Statements Promptly

   • The sooner you send out accurate tax statements, the quicker your donors can manage their finances. Timely, accurate, and professional communication reflects your church's commitment to financial responsibility.

   • Early distribution also allows time for donors to request any necessary updates or corrections.

Resources for Various Platforms

• Tithely Users: For guidance on sending out tax statements, refer to this Knowledge Base Article.

• Planning Center Online Users: Find tips and updates in this Knowledge Base Article.

• Pushpay Users: For specific instructions, visit this Knowledge Center Article.

Taking these steps ensures your church handles its financial responsibilities effectively and maintains trust and transparency with its community