How has your church been saying thank you to volunteers?
A common—and seemingly simple—approach is to give gift cards. They’re easy to purchase, convenient to keep on hand, and appreciated by recipients. On the surface, they feel like the perfect solution.
…or are they?
While the intent behind gift cards is generous and heartfelt, churches should pause before relying on them too heavily. Depending on how often they are given and the total value over time, gift cards may create unintended tax implications for both the volunteer and the church.
Here’s why it matters:
Volunteers, by definition, serve without compensation.
The moment a church provides something of more than nominal value in exchange for their time or service, the IRS may no longer view that individual as a volunteer—but as an employee.“Nominal” has a limit.
The IRS generally considers nominal gifts to be those under $100. While occasional small tokens of appreciation may be acceptable, consistency and accumulation matter.
The hidden risk
When gift cards—or other items of value—add up to more than $100 over the course of a year, that individual could be reclassified as a part-time employee. This means:
The value of those gifts may need to be treated as taxable wages
The church may take on payroll reporting and compliance responsibilities
The simplicity of a “thank you” gesture becomes a potential administrative burden
A better approach
This doesn’t mean churches should stop recognizing volunteers—far from it. It simply means being more intentional about how gratitude is expressed.
Consider alternatives such as:
Personalized handwritten notes
Public recognition during services or events
Volunteer appreciation meals or gatherings
Small, non-cash tokens of appreciation that stay within nominal limits
Final thought
Generosity and gratitude are at the heart of a healthy church culture. By understanding the guidelines around volunteer appreciation, churches can continue to say “thank you” in meaningful ways—without creating unintended consequences.
Have more questions? Contact us!