In August, 2006, Congress enacted the Pension Protection Act. Buried in this legislation were some provisions related to the tax deductibility of charitable contributions. The first provision relates to the deduction for non-cash contribution, such as items given to the Country Fair’s Hodge Podge. As of January 1, 2007, all contributions of non-cash items must be in “good condition” in order to qualify for an income tax deduction.

The second provision relates to contributions of cash. This affects everything from door to door solicitations to the Salvation Army bell ringers at Christmas to the cash placed in the weekly collection bag at Pohick. As of January 1, 2007, all charitable tax deductions must be supportable by the donor by either a bank document, i.e. cancelled check, or by a receipt from the recipient. This provision does not affect cash in a pledge envelope placed in the collection bag. Parishioners will receive a statement at the end of the year showing the contribution amount. The IRS will no longer consider loose cash donations tax deductible. To continue to contribute cash and make it tax deductible, pledge envelopes may be requested or place the cash in an envelope with a name and address on it. The Church can then keep a record of gifts and provide the necessary tax document at the end of the year.