How to show giving that isn't monetary

[cOdY]

We had a lady in the church buy some kitchen utensils, for a funeral we had at the church. She asked me to show it on her tithe, if possible, and I wasn't sure how to put it in the computer for her report at the end of the year. Because, if I put it in through the Contributions module and post it, it will be off from my bank reconciliation. Please help!

[JohnDMeyers]

You will need an asset under furniture and equipment that you can use for kitchen utensils.

Something like 01-1740-000 kitchen equipment

You will also need to set up an income account for gifts-in-kind

Something like 01-4180-000 gifts-in-kind

Then, go in Contributions / Setup / Maintain List of Contribution Funds
ADD
Fund 160 Kitchen Utensils In-kind gift
DB 01-1740-000 kitchen equipment
CR 01-4180-000 gifts-in-kind

This will not affect your checking account, therefore it will not mess up the deposit.

[beas]

I don't run non-cash giving through PC+. Since donations of new equipment, etc. can be deducted, receipts must be presented. I have a receipt template on letterhead for non-cash giving that I issue at the end of the year to the contributors. The receipt I issue lists the non-cash contributions by date with a brief description and all of the receipts are attached to the copy of the receipt I keep for the church files.

Just another way to do it so you don't have non-cash entries to deal with in PC+.

[mgc1945]

I have a variation on this question.

A member purchased some office supplies for the church, but rather than being reimbursed, asked that she be credited with a contribution to our kitchen supplies fund. I could certainly say that we would need to reimburse the individual for the office supplies purchase, and then ask that she writes a check as a contribution to out kitchen supplies fund, but how could I (should I) handle the transactions otherwise (i.e. no cash or check activity)?

[NeilZ]

I have a variation on this question.

A member purchased some office supplies for the church, but rather than being reimbursed, asked that she be credited with a contribution to our kitchen supplies fund. I could certainly say that we would need to reimburse the individual for the office supplies purchase, and then ask that she writes a check as a contribution to out kitchen supplies fund, but how could I (should I) handle the transactions otherwise (i.e. no cash or check activity)?

Put it this way, I wouldn't do it. The person gave goods, then she wants some 'credit for a fund' .. more trouble than its worth. I'd go with Beas' advice, give her a receipt on Letterhead listing the items and their cost.

FWIW ... I do believe the IRS has some specific requirements for non-cash donations now, and you could be in violation of those requirements by trying to do what she wants you to do. I would check the IRS pubs on charitable giving to be sure.

[Jeff]

Just to chime in here with a related topic.

Your accounting treatment of the donation is a separate issue from the contribution receipting. Form a contributions receipting view it is a non-cash gift and there are special rules to receipt the donation.

On the accounting side there are reasons to still record a transaction. For example say someone bought $200 worth of paint for the a work day to repaint some of the class rooms. You could record an expense to the Building Maintenance expense account and credit a Non-Cash Donation income account.

The main reason to do this is to keep your budget realistic. At the end of the year your finance committee may look at the Building Maintenance account and conclude that it can be cut because it was under budget. In reality it was at budget, but the non-cash gift was not run through the accounting entries.