No related to a PC software issue. I remember reading somewhere (I think from a reliable source) that designations made on an offering envelope are suggestion only and we (the church) are not bond by law (only ethics) to use the money as specified. I can't find where I saw this. The reason this is coming up, is that a person who used to work for another church is telling the board that they need to ask for permission from donors (no matter what the amount given was) if they use money given for a specified purpose for any other purpose, even if it is only temporary. (Money given to the building fund is currently helping to cover a negative balance in another fund, however, it will not be moved from the building fund at any time. The building fund is also not in use at this time, so it is not interfering with the use of the building fund money.)
Can anyone shed any light on this. Thanks!
Sheilah
Designated Giving Question
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Jeff
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You might want to consider getting a copy of the Church & Clergy Tax Guide. You will see others mention it on this site. It can be found at http://store.churchlawtodaystore.com/20chcltaxgu.html. There are also other publications similar to it, but I am more familiar with this one.
The closest to you situation I can find in the Church & Clergy Tax guide has to do with designated contributions to a program that you then abandon. In this case it says: "If the donors can be identified, they should be asked if they want their contributions returned or retained by the church and used for some other purpose. Ideally, donors should communicate their decision in writing to avoid any misunderstandings."
This really isn't your situation, In your case the building fund is loaning another fund some money. This would be treated as a liability in the other fund and an accounts receivable in the Building Fund. How appropriate this is to do, I am not sure. Maybe someone else can also chime in here.
The closest to you situation I can find in the Church & Clergy Tax guide has to do with designated contributions to a program that you then abandon. In this case it says: "If the donors can be identified, they should be asked if they want their contributions returned or retained by the church and used for some other purpose. Ideally, donors should communicate their decision in writing to avoid any misunderstandings."
This really isn't your situation, In your case the building fund is loaning another fund some money. This would be treated as a liability in the other fund and an accounts receivable in the Building Fund. How appropriate this is to do, I am not sure. Maybe someone else can also chime in here.