Understanding the Many Benefits of Generosity
Tithing — the act of giving 10% of your income to your church or another ministry — is a spiritually vibrant discipline that offers many intangible benefits. Can it also provide you with a tax break?
As Christians, the reason why we give should stem from a heart of gratitude in response to what God has done for us by giving us the greatest gift of all: Jesus. Receiving a potential tax deduction is only an added benefit to the many other blessings that are promised(available?) to those who practice generosity. Additionally, it is a mark of wise stewardship to make good use of any current laws that could help you save money.
Let's take a look at tithing, what it is, why you should (or maybe shouldn't) do it, and how you can benefit from being generous.
What Is Tithing?
Tithing is an age-old concept that originated in Jewish culture and is still widely practiced in many Christian traditions today.
In the Old Testament, Jewish law mandated that individuals give a certain percent of their wealth to support the priesthood, the temple, people who had needs, and community work (Leviticus 27:30). The main purpose of tithing was to remember God in a tangible way. It served as a way to give back to God and participate in His plans and purposes for a thriving community centered around worship.
Many people believe that a tithe is 10% because the English word "tithe" means "ten." In the Bible, however, it's not quite that clear cut. The percentages varied based on many different factors. Whatever its precise definition, though, tithing is a form of financial stewardship, where individuals commit to giving a portion of their income or resources to support the work of God in their community and tangibly live out their faith.
Furthermore, researchers found that just 51% of practicing Christians say they regularly give 10% or more of their income. Denominational differences are evident too, with 40% of Baptists tithing, followed by 34% of Presbyterians and non-denominational Christians, and then smaller numbers after that.
Teachings on giving varies across churches as well, with some pastors urging tithing, others asking for pledges, or some simply asking people to be generous with what they have. Interestingly, research from George Barna found that only one-third of U.S. pastors believe 10% should be the standard for giving. Others hold different ideas.
Whatever your church teaches about tithing, Jesus himself upheld the importance of giving in the New Testament. He also suggested that giving benefits the giver more than the recipient. "Give," Jesus said in Luke 6:38, "and it will be given to you. A good measure, pressed down, shaken together, and running over, will be poured into your lap. For with the measure you use, it will be measured to you.”
The Financial Realities of Tithing
When you tithe, you are contributing to the financial stability and growth of your local church. Churches rely on tithes and donations to support the work of the ministry and pay for operational costs, such as staff salaries, building maintenance, and outreach programs.
Your tithe can also help fund specific projects or initiatives, such as missionary work or building renovations. When churches receive consistent tithes, they are able to better plan for the future and expand their impact in the community.
However, it is important to note that tithing is not a one-way street. Giving generously can also have financial benefits for the giver. Studies have shown that people who give money away are generally happier and more content with their finances.
It is also worth noting that tithing is neither a requirement for salvation nor a guarantee of financial prosperity. Rather, it is an act of faith and obedience to God's command to give generously. Christians should tithe with a joyful heart, not out of obligation or a desire to reap financial benefits for themselves.
What Tithing Does for the Church
Your tithe helps your church be the church to the world!
In fact, tithing plays a significant role in ensuring that your church can continue to operate and serve its congregation. Many churches rely on the regular giving of their members to maintain their services and keep their doors open.
Tithing can also help your church to expand its reach and impact. With your financial contributions, your church can invest in new ministries and initiatives that can benefit the wider community. Whether it's providing food and shelter for those in need or organizing outreach events, your tithing can make a significant difference.
Ultimately, tithing allows you to play an active role in supporting the mission and vision of your church. It's an opportunity to show your gratitude for all the blessings that God has given you and to contribute to something bigger than yourself. By giving generously, you can help your church to continue to grow and thrive, while also enriching your own spiritual journey.
What Tithing Does for You
Let's be clear: tithing doesn't make God love you more, and God does not offer you material prosperity in exchange for your gift to a ministry. Tithing and giving generously, however, do provide many benefits. Here are just a few:
Tithing helps us focus on God, rather than material possessions. When we give generously, we are acknowledging that our blessings come from God and that we are not in control of everything in our lives. This can help us to keep our priorities in check, and to remember what is truly important.
Tithing strengthens our faith. Tithing and giving generously requires trust in God's provision, even when it might not seem logical or practical. This can help us to deepen our faith and to rely more fully on God in all aspects of our lives.
Tithing blesses others. When we give generously, we are able to help those in need and support the work of the church. This can make a tangible difference in the lives of others and can be a powerful way to share God's love with those around us.
Tithing brings joy and fulfillment. Studies have shown that giving to others can actually make us happier and more fulfilled. By giving generously, we can experience the joy of making a difference in the lives of others and supporting causes that matter to us.
In short, tithing and giving responsibly is not just about fulfilling a duty or meeting an obligation — it is a powerful way to live out our faith, bless others, and experience the joy and fulfillment that comes from living a generous life.
How the IRS Views Tithing
According to the IRS, contributions made to qualified churches, synagogues, temples, mosques, and other organizations are considered charitable donations. This means that they may be eligible for tax deductions.
However, there are a few important things to keep in mind when it comes to tithing and tax deductions.
First, in order to claim a deduction for charitable donations, you must itemize your deductions on your tax return*. This means that you must choose to claim individual deductions rather than taking the standard deduction. Ask your tax preparer which choice is right for you before you file. *If you’re giving out of an IRA account through Qualified Charitable Distributions (QCDs), you don’t need to itemize to receive a tax benefit for your giving. Talk with your financial advisor or CPA to learn if this is an option for you.
Second, there are certain limits to how much you can deduct for charitable donations. Generally, you can deduct up to 60% of your adjusted gross income (AGI) for charitable contributions. However, this limit may be lower for certain types of organizations or donations.
Finally, it is important to keep accurate records of your donations. You will likely want to keep documentation, such as receipts, copies of checks, or bank statements, to support any charitable deductions you claim on your tax return.
While it may be tempting to focus on tax deductions when deciding whether or not to tithe, it is important to remember that the primary reason for giving should not be taxes. Instead, it should be motivated by your heart, relationship with Jesus, and the desire to help support your church, community, or others. The spiritual blessings of a generous lifestyle far outweighs any potential tax benefits.
Four Frequently Asked Questions About Tithing
Should I tithe while I'm paying off debt? We think it's a very good idea. Getting out of debt is usually a matter of increasing your personal discipline. So disciplining yourself to give regularly can actually be an important part of getting out of debt.
Should I tithe on gifts or tax returns? No Biblical passage directly addresses this question. We believe it's between you and God.
Can I trust the church with my tithe? Most churches make their financial statements available upon request. Some post their financial reports on their website or in another public place. You can use these documents to review how they spend money. It's also a good idea to find out how your church makes its financial decisions.
If my income has increased, should my giving increase? If you are stewarding your wealth wisely — enjoying, saving, investing, and giving your money responsibly — you may want to give more than 10%. The rewards of a generous lifestyle are worth it!