Repairs - Billable vs. Volunteerism

Question:
Our church had some water damage that was covered by insurance. A church member who is also a contractor is willing to make the repairs which may include some structural changes. Some of the repairs he is “volunteering” to complete and some he will be compensated for. Should I have a contract on file that separates what is volunteer and what will be billed? How should I proceed?

Answer:
yes. You should at least ask for a detailed billing estimate before he begins. That way you will know what he is going to bill you for and what will be volunteerism. Often in these cases they would bill you for parts and/or supplies since they represent actual out-of-pocket expenses and then donate their services. However, it would be wise to know that he can not receive any giving credit for his services.

It might be better for him to allocate any billing to his services and “donate” the parts. He still gets paid but can still receive a charitable giving credit for any donated assets…replacement parts and/or supplies.