Should You Tithe on a Gift or Inheritance?
"Every good and perfect gift is from above, coming down from the Father." — James 1:17, NIV
You inherit $50,000 from your grandmother's estate. Your church's stewardship team suggests you tithe 10%, giving $5,000 to the church. Alternatively, your friend gifts you $2,000 to help with a medical situation, and you wonder whether to tithe on it.
These scenarios highlight an important distinction: Should you tithe on money that comes through inheritance and gifts rather than through your earned income?
The answer isn't obvious, but it reveals something important about what tithing actually is—and why it matters.
Understanding Tithe vs. Gift
The Old Testament tithe was defined as a percentage of "increase"—profit from your labor or investment. A farmer owed tithe on the harvest he grew, not on seeds given to him or inherited land.
Inheritances and gifts are transfer of principal, not increase from work. Your grandmother had that money. She earned it (or someone before her did) and accumulated it. When she passes it to you, you're receiving principal, not increase.
Similarly, when a friend gifts you money, they're giving you their accumulated principal, not increase they've generated since they decided to give.
Approach 1: No Tithe on Gifts or Inheritances
Argument:
- Inheritances and gifts are principal transfers, not "increase" in the biblical sense.
- You didn't earn them. Tithing is commanded on what you've earned, not on what's transferred to you.
- The person who originally earned the money should have tithed on it. Tithing it again when transferred would be double-tithing.
- Gifts, especially those given to help you in need, are meant to help you. Immediately giving away 10% undermines their intent.
Biblical support:
- Proverbs 13:22: "A good person leaves an inheritance for their children's children." The assumption is the heir receives the inheritance, not that they tithe it away.
- The biblical tithe is on "increase," not transfers (Proverbs 3:9, Malachi 3:10).
Strength: This interpretation aligns with biblical language around tithe as increase from labor.
Approach 2: Yes, Tithe on Inheritances and Gifts
Argument:
- Money is money. If you tithe on earned income, consistency demands you tithe on inherited income too.
- An inheritance is an increase in your net worth, even if someone else earned it originally.
- Testing your faith: Tithing on an inheritance demonstrates that you trust God even when receiving unexpected blessing.
- Many church traditions teach this. It's the expected practice in some communities.
Weakness: It conflicts with the biblical definition of tithe as income from labor, not principal transfers.
Approach 3: Give Generously, Not Necessarily Tithe
Argument (preferred):
- You're not obligated to tithe on inheritances or gifts (they're not "increase" in the biblical sense).
- But gifts, especially large ones, often stir gratitude. Express that gratitude through generous giving.
- Rather than a fixed 10% tithe, consider what percentage feels right as an act of gratitude.
Example reasoning: "I inherited $100,000. I'm genuinely grateful for my grandmother and for God's provision through her. I feel called to give back. I'll give $15,000 to causes she cared about, to honor her legacy and express gratitude to God."
This gives generously (15%) but recognizes the money isn't titheable income in the strict sense.
Strength: It honors the biblical framework while encouraging generosity.
The Practical Consensus
Most evangelical financial teaching settles here:
- Inheritances and gifts are generally not tithed in the strict sense (10% is not "required").
- But giving generously from an inheritance is encouraged, especially as an expression of gratitude.
- The percentage is your decision, not a biblical requirement.
This resolves the tension between biblical accuracy and encouraging generosity.
Special Cases
Large inheritances: If you inherit $500,000, giving none to kingdom causes seems ungenerous. Consider giving 5-10% ($25,000-50,000) as an act of gratitude, not obligation.
Gifts given to help in crisis: If someone gifts you $5,000 to help with medical bills, giving away $500 immediately doesn't honor their intent. Use the gift as intended; give separately from other resources.
Inheritance from non-believer: You inherit from an unbelieving relative. Does the money carry any obligation? No. But you might still choose to give generously as an act of faith.
Inheritance with strings attached: Your grandmother's will specifies that money go to her church. You disagree with that church. Honoring the will likely means honoring her intent, even if you'd give differently.
Case Studies
Rachel: Large Inheritance
Rachel's father passes, leaving her $250,000. Her church suggests she tithe $25,000.
Rachel's thought process: "Dad earned this through his lifetime. If he tithed on it, great. But I shouldn't tithe on his already-tithed money. However, I'm genuinely grateful to God for this blessing and for my father. I'm going to give $20,000—not as a tithe, but as an expression of gratitude. I'll direct it toward causes Dad cared about."
Rachel gives generously (8%) without the tension of "required" tithe.
James: Small Gift
James's friend struggles with medical debt. James gifts him $2,000 from his savings.
James doesn't give the $2,000 expecting a return. A few months later, James receives his own unexpected bonus. Should he tithe on the bonus? Yes. Should he consider the $2,000 gift he gave as part of his annual giving? He might, but the gift itself doesn't require tithing.
Maria: Inherited IRA
Maria's mother passes, leaving her an inherited IRA worth $150,000. Maria is required to take RMDs (Required Minimum Distributions). In year one, she withdraws $5,000 in RMDs.
Should she tithe on the $5,000?
It's reasonable to consider RMDs as income and tithe on them (since she's actively withdrawing and controlling the amount). It's also reasonable to consider the entire $150,000 as inherited principal and not tithe on distributions.
Most advisors suggest: If the inherited IRA distributions become part of your regular retirement income, treat them like pension income (tithe on them). If you're drawing down the balance slowly, consider it return of inherited principal (less clear tithe obligation).
A Practical Approach to Any Large Gift or Inheritance
Acknowledge that it's not "earned increase." Don't feel obligated to tithe 10%.
Decide what you want to give. What percentage feels right as an expression of gratitude? 5%? 15%? None?
Decide where to give. If it aligns with the deceased person's values, consider giving to causes they cared about.
Give from heart, not obligation. Your gift should feel genuinely joyful, not compelled.
Document it. Whether you give or not, be clear with yourself about your decision so you don't second-guess it later.
Use the remainder wisely. An inheritance is an opportunity to improve your financial position—pay down debt, fund retirement, invest, or create margin for increased lifetime generosity.
The Deeper Principle
Tithing exists to teach dependence on God and proportional sharing of earned increase. Gifts and inheritances test a different principle: gratitude and stewardship of unearned blessing.
Someone who receives an inheritance and immediately spends it frivolously has missed an opportunity. Someone who receives an inheritance and hoards it out of fear has failed stewardship. Someone who receives an inheritance and gives generously while using the remainder to strengthen their financial position—that person has understood the blessing.
The tithe may not be "required," but generous, wise stewardship of inherited blessing absolutely is.
Sources
- Köstenberger, Andreas J. & Mask, David C. "The Apostles' Teaching About Money." B&H Publishing, 2021.
- Blue, Ron. "Master Your Money: A Step-by-Step Plan to Financial Freedom." Thomas Nelson, 1986.
- Alcorn, Randy C. "Money, Possessions, and Eternity." Tyndale, 2003.