Investments
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Investments
Our church was given about $20,000.00 worth of gold (according to the market on 8-9-09) and I need to distribute monies to multiple people according to the donors wishes. What is the best way to handle this? Do I set up a new fund or a new account or is there another way.
Re: Investments
Linda,LindaW wrote:Our church was given about $20,000.00 worth of gold (according to the market on 8-9-09) and I need to distribute monies to multiple people according to the donors wishes. What is the best way to handle this? Do I set up a new fund or a new account or is there another way.
just to verify, this question is in reference to the Daymark Systems Accounting Partner program, correct ??
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: Investments
No...I don't know what the Daymark Systems Accounting Partner program is. Does that have anything to do with Power Church? I thought I was posting something in the Power Chuch Support Forum.
Re: Investments
Powerchurch took over responsibility for support for Accounting Partner, another program that is no longer being produced.LindaW wrote:No...I don't know what the Daymark Systems Accounting Partner program is. Does that have anything to do with Power Church? I thought I was posting something in the Power Chuch Support Forum.
FYI .. you want to use the forum called Accounting under the Powerchurch Software category.
I'll flag this for the guys to move.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
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JohnDMeyers
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Re: Investments
If someone had donated $20,000 in cash, with restrictions to distribute to a few people, I would simply incorporate it into the general fund.
This one is a little more complicated, in that there will have to be some conversion of gold to cash, and market adjustments, as well as the distributions. You may decide that is too much activity for the general fund (it might be a distraction to keeping track of the "normal" activity of your organization), and therefore it is better off in its own fund.
Here's how I would handle this (assuming a separate fund, "Fund 08" is created):
I would copy the Chart of Accounts from Fund 01 to Fund 08 (assuming your Chart of Accounts is roughly the same as the default Chart of Accounts in PowerChurch)
Create 08-1910-000 Gold donation <-this is under "Other Assets"
Create 08-1912-000 Cash conversion of Gold
Create 08-1914-000 Adjust gold to market (to account for fluctuations in conversion price)
Create 08-3105-000 Adjust gold to market (to account for fluctuations in conversion price)
Create 08-4205-000 GROUP ACCOUNT "NON CASH INCOME" <-this is under Temporarily Restricted income"
Create 08-4999-000 General Release (if it does not already exist)
Create 08-5350-000 GROUP ACCOUNT "GOLD DONATION RECIPIENTS"
Create 08-5302-000 "Mike Jones" (however you want to designate the recipients)
Create 08-5304-000 "Deb Jones" (however you want to designate the recipients)
NOTE: 5302 - 5320 will all close to "Unrestricted Net Assets"
Using the "Maintain List of Donor Restrictions" wizard:
Call it "Gold Donation"
Create 08-3210-000 Gold donation <-this is under "Temporarily Restricted Equity"
Create 08-4210-000 Gold donation <-closes to 08-3210-000
Create 08-4810-000 Gold donation release <-closes to 08-3210-000
Skip the creation of expense accounts (create them manually as shown above)
Skip the creation of a Contribution Fund (you can make the entry below in Fund Accounting)
Receive the asset with an appraised value of $20,000:
(In Fund Accounting)
DB 08-1910-000 Gold donation $20,000
CR 08-4210-000 Gold donation $20,000
If you sell 10% of the gold (valued on your assets at $2,000), for $2,100:
(In Fund Accounting)
DB 08-1912-000 Cash Conversion of Gold $2,000
CR 08-1910-000 Gold Donation $2,000
DB 08-1914-000 Adjust Gold to Market $100
CR 08-3105-000 Adjust Gold to Market $100
NOTE: if conversion is less than $2,000, simply reverse the DB and CR on this transaction.
To make distribution to "Mike Jones" for $700
(In Fund Accounting)
DB 08-1110-000 checking $700
CR 08-1912-000 Cash Conversion of Gold $600
CR 08-1914-000 Adjust Gold to Market $100 (an example of how to use up the "extra money")
(In accounts payable)
CR 08-1110-000 Checking $700
DB 08-5302-000 Mike Jones $700
NOTE: use the RELEASE FROM RESTRICTION button at the bottom of the invoice
Release from Restriction, "Gold Donation", and the appropriate accounts will appear in the invoice. Only release the amount coming out of 08-1912-000, which is $600 in this example. (Adjust the DB and CR for 4810 and 4999 to be $600) The amount coming out of 08-1914-000 is not restricted.
That should do it.
If there is something I haven't thought of, please ask.
This one is a little more complicated, in that there will have to be some conversion of gold to cash, and market adjustments, as well as the distributions. You may decide that is too much activity for the general fund (it might be a distraction to keeping track of the "normal" activity of your organization), and therefore it is better off in its own fund.
Here's how I would handle this (assuming a separate fund, "Fund 08" is created):
I would copy the Chart of Accounts from Fund 01 to Fund 08 (assuming your Chart of Accounts is roughly the same as the default Chart of Accounts in PowerChurch)
Create 08-1910-000 Gold donation <-this is under "Other Assets"
Create 08-1912-000 Cash conversion of Gold
Create 08-1914-000 Adjust gold to market (to account for fluctuations in conversion price)
Create 08-3105-000 Adjust gold to market (to account for fluctuations in conversion price)
Create 08-4205-000 GROUP ACCOUNT "NON CASH INCOME" <-this is under Temporarily Restricted income"
Create 08-4999-000 General Release (if it does not already exist)
Create 08-5350-000 GROUP ACCOUNT "GOLD DONATION RECIPIENTS"
Create 08-5302-000 "Mike Jones" (however you want to designate the recipients)
Create 08-5304-000 "Deb Jones" (however you want to designate the recipients)
NOTE: 5302 - 5320 will all close to "Unrestricted Net Assets"
Using the "Maintain List of Donor Restrictions" wizard:
Call it "Gold Donation"
Create 08-3210-000 Gold donation <-this is under "Temporarily Restricted Equity"
Create 08-4210-000 Gold donation <-closes to 08-3210-000
Create 08-4810-000 Gold donation release <-closes to 08-3210-000
Skip the creation of expense accounts (create them manually as shown above)
Skip the creation of a Contribution Fund (you can make the entry below in Fund Accounting)
Receive the asset with an appraised value of $20,000:
(In Fund Accounting)
DB 08-1910-000 Gold donation $20,000
CR 08-4210-000 Gold donation $20,000
If you sell 10% of the gold (valued on your assets at $2,000), for $2,100:
(In Fund Accounting)
DB 08-1912-000 Cash Conversion of Gold $2,000
CR 08-1910-000 Gold Donation $2,000
DB 08-1914-000 Adjust Gold to Market $100
CR 08-3105-000 Adjust Gold to Market $100
NOTE: if conversion is less than $2,000, simply reverse the DB and CR on this transaction.
To make distribution to "Mike Jones" for $700
(In Fund Accounting)
DB 08-1110-000 checking $700
CR 08-1912-000 Cash Conversion of Gold $600
CR 08-1914-000 Adjust Gold to Market $100 (an example of how to use up the "extra money")
(In accounts payable)
CR 08-1110-000 Checking $700
DB 08-5302-000 Mike Jones $700
NOTE: use the RELEASE FROM RESTRICTION button at the bottom of the invoice
Release from Restriction, "Gold Donation", and the appropriate accounts will appear in the invoice. Only release the amount coming out of 08-1912-000, which is $600 in this example. (Adjust the DB and CR for 4810 and 4999 to be $600) The amount coming out of 08-1914-000 is not restricted.
That should do it.
If there is something I haven't thought of, please ask.
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