Contribution from one Exempt org to another

[lindac]

An exempt organization wants to buy a set of cymbals for a church. If they give the money rather than buy the cymbals, I know that it should be set up as a designated contribution. But, if they actually buy the set, how is that handled? Will a copy of the bill of sale be enough for the church records and is the value then added as an asset? The value is about $750. Thanks for your help

[NeilZ]

An exempt organization wants to buy a set of cymbals for a church. If they give the money rather than buy the cymbals, I know that it should be set up as a designated contribution. But, if they actually buy the set, how is that handled? Will a copy of the bill of sale be enough for the church records and is the value then added as an asset? The value is about $750. Thanks for your help

In actuality, this is more an accounting issue, than Contributions. Since the organization is buying the equipment, giving them a donation letter thanking them for the equipment is enough for their records.

For the church records, having a copy of the invoice/bill of sale showing the cost of item will enable you to add the equipment as an asset.

How to do this is covered in the thread I have listed below, you would follow the instructions for the donated grand piano to do a similar set of transactions in your system.

http://powerchurch.com/forum/viewtopic.php?f=3&t=4102

Hope this helps.

[lindac]

Thanks Neil. I could explain sale/disposal of an asset to the organization, but wasn't quite sure about receiving a non-cash item between two exempts. This helps.