Churches (or any nonprofit) input their donations in a donation software to ensure donors are provided a statement at the end of the year — not only for tax purposes but to communicate to the donors how their donations were used. Typically the statements are ran for the entire year (calendar year) irregardless what the church… ⪼ Continue Reading…
contribution statements
Linking Donations to Accounting Part 3
This is the third of a four part series. See part 1, part 2, or part 4. In part 1 and part 2 of this series, we looked at how our link between donations and the fund accounting system could be used to handle some regular donations. For this post and part 4, we’ll build… ⪼ Continue Reading…
Quarterly Donation Statements for Church Members
It’s Spring! And a person’s thoughts turn to…. quarterly donation statements? OK, maybe that’s not how you would finish the sentence, but it is a timely topic for several reasons, and reaching the end of a financial quarter is just one of them. Why send out quarterly statements? While you are not required by the… ⪼ Continue Reading…
Special Tax-Free Charitable Distributions for IRA Owners
Churches that accept IRA donations may want to consult with their CPA or keep their attention on updates from the IRS about this IRS tax deduction. IRA charitable distributions became law in 2015 by Congress. The following explanation from the IRS’ website should clarify. This provision offers older owners of individual retirement arrangements (IRAs) a… ⪼ Continue Reading…
Noncash Donations: When Businesses Donate Pt. III
This is our third and final post dealing with how your church can responsibly handle noncash donations from other organizations. People often call such donations gifts in kind or in-kind donations. (See a definition here.) So far, in part 1 and part 2, we’ve only talked about donations of money. But what if instead of… ⪼ Continue Reading…
When Organizations Donate to Your Church (part 2)
This is part 2 of a series regarding how churches respond when other organizations collect donations on their behalf. Last week, we looked at a scenario where people donate to a nonprofit, which in turn sends the total of those donations to the church for one of the church’s functions. Now let’s put a twist… ⪼ Continue Reading…