Do You Tithe on Gifts? Financial & Spiritual Perspectives

Tithing, a practice deeply rooted in many religious traditions, involves setting aside a portion of one’s income or resources for religious or charitable purposes. While the concept of tithing earned income is widely understood, questions often arise regarding whether gifts, such as monetary presents or inherited assets, should also be included. This article explores the various viewpoints and practical considerations surrounding the tithing of gifts.

Understanding Tithing Principles

Tithing typically refers to giving a tenth, or 10%, of one’s income or “increase” to a religious organization. This tradition dates back to ancient times, with biblical references to figures like Abraham and Jacob.

The concept of “firstfruits” emphasizes offering the initial and best portion of one’s harvest or earnings. This practice acknowledges a higher power as the ultimate source of blessings.

In various faiths, tithing is a spiritual discipline fostering trust, stewardship, and generosity. Historically, it focused on agricultural produce and livestock. As economies evolved, the concept extended to monetary income, maintaining the principle of giving a proportional share of one’s financial increase.

Different Perspectives on Tithing on Gifts

Tithing on gifts presents a complex area of interpretation within religious communities. Some adherents believe any “increase,” including gifts, inheritances, or winnings, should be subject to tithing, viewing them as blessings.

Conversely, other interpretations suggest tithing applies primarily to earned income from labor or business activities. Under this view, gifts or inheritances, received without direct effort or service, may not fall under the traditional definition of “increase.” This perspective emphasizes that tithing is a return of what one has produced through their work.

Different religious denominations and individual spiritual convictions contribute to diverse opinions. Some teachings differentiate between the nature or intent of the gift; for instance, a large inheritance might be viewed differently from a small birthday gift. Ultimately, many spiritual leaders emphasize that the decision to tithe on gifts is personal, made through prayer and discernment.

Practical Considerations for Monetary Gifts

When tithing on monetary gifts, practical questions arise regarding valuation and timing. For cash gifts, the calculation is straightforward: a tenth of the amount received. For example, a $100 cash gift would result in a $10 tithe. This simple approach applies whether the gift is a small birthday present or a larger sum.

Gift cards or other cash-equivalent gifts are typically treated similarly to cash, with their face value serving as the basis for calculating the tithe. For instance, a $50 gift card would entail a $5 tithe.

The timing of the tithe is also a consideration. Some prefer to tithe immediately upon receipt, while others might wait until funds are spent or integrated into their regular financial flow.

Inheritances, especially large ones, introduce additional considerations. Some interpretations suggest tithing on the full inherited amount upon receipt, viewing it as a significant increase. Other perspectives indicate a tithe may only be due if inherited assets, such as property or investments, are converted into cash. This approach acknowledges that illiquid assets do not immediately provide spendable income.

Addressing Non-Monetary Gifts

Tithing on non-monetary or in-kind gifts presents unique challenges due to difficulty in assigning a precise monetary value. For physical gifts like property, goods, or valuable items, their fair market value (FMV) is typically used for valuation. This aligns with how non-cash charitable contributions are valued for tax purposes, where the IRS generally requires using FMV at the time of donation.

For substantial non-cash donations exceeding $5,000, the IRS may require a qualified appraisal to support the claimed value. While this ensures accuracy, it can be impractical for smaller gifts. In such cases, individuals may determine a reasonable value based on what they would have paid for a similar item.

Tithing on services received or rendered is another complex area. While some may attempt to assign a monetary value to volunteer work or professional services, this is not a universally accepted practice for tithing.

Instead of a direct monetary tithe, some individuals dedicate their time, skills, or service to their religious community or charitable causes. This alternative approach allows for contributing to the community when a direct financial tithe on non-monetary benefits is not feasible.