Pass Thru contribution

[jcgraves3004]

In layman's term can you explain how to handle pass thru contributions when it is time to release them to their intended ministry, etc.

We frequently receive specified offering. When it is time to release them, we have followed this process.
Accounts payable/Maintain manual checks/credit the bank account and debit the n expense account that is associated with that ministry. I have been reading some of the forums and I just know that is not the correct step. We have been using PowerChurch 2 years now it is still so much we don't know. Looking forward to them reinstating the online classes but I do appreciate the help that we are receiving on this forum. You guys are awesome! we are using version 11.5 power church plus.

[NeilZ]

In layman's term can you explain how to handle pass thru contributions when it is time to release them to their intended ministry, etc.

We frequently receive specified offering. When it is time to release them, we have followed this process.
Accounts payable/Maintain manual checks/credit the bank account and debit the n expense account that is associated with that ministry. I have been reading some of the forums and I just know that is not the correct step. We have been using PowerChurch 2 years now it is still so much we don't know. Looking forward to them reinstating the online classes but I do appreciate the help that we are receiving on this forum. You guys are awesome! we are using version 11.5 power church plus.

If these are indeed 'pass thru' funds, that is, money that is only given to the church to pass on to another organization, then there is a better way to do this.

For example, right now many churches are taking in funds to pass on to disaster relief organizations such as Samaritan's Purse.

This type of money should be coming though Contributions and going into a liability account, as it it not an expense to the church. In Accounts Payable you would write the check against the liability account in much the same way you would write a check for payroll taxes against the FITW liability account.

[jcgraves3004]

thank you

[jcgraves3004]

I understand the accounts payable portion but how do I get pass through contributions to a liability account .

[NeilZ]

I understand the accounts payable portion but how do I get pass through contributions to a liability account .

You set that in Contributions when you're setting up the Contribution Fund under the setup's Accounting tab. Select the liability account as the Credit(income) account. For normal contributions of offerings, an income account is what you would use, however, since this is a pass thru, you select the liability account instead.


So, if you were collecting Money to be sent to Samaritan's Purse, you would:

1. In Funds Accounting - if you don't have a pass thru contribution liability account setup for Samaritan's Purse, you would create one under the 2000 series of liability account numbers. I believe when you run the Accounting Setup, it assigns a number of 2300 to the group account "Passthrough Contributions". We have our Samaritan's Purse passthrough account as 2310-000.

2. Setup a new Contribution Fund, select "include on statements" on the General tab.
3. Select your normal checking as the Debit account on the Accounting tab.
4. Select the liability account (in our case 2310-000) as the Credit account on the Accounting Tab.

You're done. All monies coming in will be reflected on the contributor's statement, and the funds will show up in the liability account, without being listed as income to the church.