How to enter contributions as non-taxable

[RonW]

How can we show a contribution as non-taxable, so that when the annual contribution statement is printed it reflects the non-taxable status. Other programs allow a check box or something, so you can designate in the entry of the data if a contribution is taxable.
We need this feature so that items like tapes purchased by members, or gifts for meals, etc (non-taxable) can be recorded, but designated as non-taxable.

[Zaphod]

Generally, any money exchaged for goods and services is not a contribution. You can track anything like that in Accounts Receivable.

That being said, if you really want to use the Contributions module to track these transactions, you could create a new fund called "Non-Tax Deductable" or something and that would show up on a statement as such. You could even go one step further and make the fund number outside the normal range of your fund numbers so you can even exclude it from the statements if you want.

[camd]

This has been a major headache for me too. In Canada, we need to have all contributions separated into 3 categories - those that get a tax receipt, those that don't, and gifts from other charties. PowerChurch does not offer an easy way to do this.

Here's how I do it: I set up a Personal Status Code called Non-Taxable. I then set up all of the Personal Profiles that do not receive tax receipts with the Non-Taxable Personal Status Code. When you print your receipts, you can uncheck the Status Codes that you do not generate receipts for.

This system means that you may have to set up more that one Personal Profile for some Members (one as taxable, one as non-taxable), but it's the only way that I can figure out how to make PowerChurch do it's job.

Thots?
camd.

[Zaphod]

This is an interesting issue. I'm going to forward this to wishlist@powerchurch.com, but feel free to write there yourselves with this suggestion. That address goes directly to our head of development.

You could possibly set up your current system to use ranges of Contributions funds to accomodate this need. For instance, you could specify that all your taxable funds are in the range 100-199, non taxable are 200-299, and gifts from other charitites are 300-399. Then, when you run statements, you could run a "taxable" statement by specifying the proper fund range. You could then do the same for the other two categories. This would mean generating 3 sets of statements, but that seems like less of an issue than having duplicate Personal Profiles.

[jeffkoke]

We do this by creating specific contribution funds and add "NONCONTRIB" to the end of it. So, if the senior adults are putting money in to pay for a trip to an out of town event, it is categorized correctly. This type of contribution also shows in their contribution statement and keeps everyone happy.

Doing it this way also helps keep the budget from getting tainted.

Make sense?

Jeff

[camd]

That seems like a good idea.

Just to be clear: This means that each contribution fund in PowerChruch needs a corresponding non-taxable fund. All of our staff (about 15 people) fundraise their own salaries, and we fundraise for each of our programs (about a dozen). By your system, we need two contribution funds for each staff and program - one for taxable contributions, one for non-taxable.

Correct?
camd.

[jeffkoke]

Yes, you are exactly correct. For instance, we have a "children's church fund" and a "children's church NONCONTRIB fund." So, when they sell t-shirts, all of the proceeds go into the NONCONTRIB fund.

Make sense?

Jeff

[camd]

Thanks!
camd

[isawat]

We have actually approached the problem from the other side. We have set up all our contributors who are non-taxable (i.e. charities, etc.) in their own separate envelope range (90000 and up). That way when we print tax receipts we only select envelope numbers up to 89999. We still have access to the information needed for the Canadian charities tax return by running reports the show amounts contributed by other charities (env #'s 90000 and up).

Any income that comes in that isn't considered a "contribution" (i.e. where they get something in return), we only record through the fund accounting as a journal entry.

[WLewis]

I put an * at the end of the names of the contrib funds that are non-deductbile and grouped them together.

that way, its easy to separate the 2 for tax time.