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Designated Offering and Pastor's Salary
Posted: Wed Jan 24, 2007 1:29 pm
by bachristo
We have a member who designates a certain amount of their offering to be used to help pay the pastors salary. She does not do this every month. Instead, it may be 2 or 3 times per year.
What is the best way to record this transaction. I am a bit confused since this is dealing with payroll as well as restricted funds.
Re: Designated Offering and Pastor's Salary
Posted: Wed Jan 24, 2007 2:20 pm
by NeilZ
bachristo wrote:We have a member who designates a certain amount of their offering to be used to help pay the pastors salary. She does not do this every month. Instead, it may be 2 or 3 times per year.
What is the best way to record this transaction. I am a bit confused since this is dealing with payroll as well as restricted funds.
This is something that should be talked over with your accountant as well as the contributor. Normally, a church allocates the pastor's salary out of standard operating funds and is budgeted. Any money this contributor allocates just offsets money that goes back into the operating fund. In other words, its all operating funds one way or another.
IMHO .. I'd create a contribution fund for this contributor only that posts directly to the operating fund. I'd also have one of the trustees or church council members talk to the person about how the church allocates funds.
Posted: Wed Jan 24, 2007 3:19 pm
by tborgal
Is this contribution changing the Pastors salary? Are you taking the amount given and adding it to his usual pay? If it is not then what Neil says is correct. This is nothing more than a contribution to the fund that the pastors salary is paid out of.
But then Neil is almost always correct.
Posted: Thu Jan 25, 2007 12:08 am
by NeilZ
tborgal wrote:Is this contribution changing the Pastors salary? Are you taking the amount given and adding it to his usual pay? If it is not then what Neil says is correct. This is nothing more than a contribution to the fund that the pastors salary is paid out of.
But then Neil is almost always correct.
Emphasis on the 'almost always'
