Registration Fees

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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zmmcneil
Posts: 13
Joined: Wed Jun 12, 2013 6:10 pm

Registration Fees

Post by zmmcneil »

Scenario: So we had a 5k Fundraiser to raise money for missions. The registration fee was $25 and all proceeds go to missions.

I assume theses registration fees are NOT tax deductible because they received a service in running the 5k.

Therefore, when I enter the money in contributions, I have a fund set up called (4) Registrations/Fees this is NON Tax Deductible contribution fund which will post to the General Fund.

Once the contributions are posted, should I then transfer the total from General Fund into the Missions Fund in Fund Accounting? Otherwise, if I enter the contributions directly into contributions as (2) Missions, they will get Tax Credit for it. I've never transferred Funds between accounts.

What is the best way to handle this situation? Anyone have a similar scenario?

Thanks in advance. :)

Michelle

tborgal
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Re: Registration Fees

Post by tborgal »

I am not sure about receiving a service in running a 5k since for me it would be nothing short of a death sentence. However in answering your question on the posting. I would post the contribution directly to the mission fund. If you set up the contribution fund with a number well above your other funds, I use numbers from 501 and up, for the non deduct contributions. When you print your statements you can exclude all funds above 500 and the contribution will not show up on the statement. Or you could just uncheck the include fund on statement option under the general tab on the Maintain List of Contribution Funds window.
Tom

JohnDMeyers
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Re: Registration Fees

Post by JohnDMeyers »

If the $25 didn't pay for any of the costs of running the event, you may have been able to structure the $25 fee a little differently to make it tax-deductible. For example, advertising a suggested donation of $25 and allowing those who couldn't pay the $25 to run anyway.

If you are counting the $25 as a non-tax-deductible fee, then you can lump the entire amount into one entry and make a cash donation of $1,000 to missions (or whatever amount was raised).

There wouldn't be any need to assign the amount to a person except to give them a tax-deduction.
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zmmcneil
Posts: 13
Joined: Wed Jun 12, 2013 6:10 pm

Re: Registration Fees

Post by zmmcneil »

Thank you for the ideas. I appreciate it. I would love to hear how others would handle this scenario or have done something similar in the past.

Michelle

NeilZ
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Re: Registration Fees

Post by NeilZ »

zmmcneil wrote:Thank you for the ideas. I appreciate it. I would love to hear how others would handle this scenario or have done something similar in the past.

Michelle
Here's what I would do:

1. To make entry of these fees easier for whomever enters data, create a special Contribution Fund that will update Mission Income and the Checking account. This will eliminate having to worry about transferring funds.

2. Enter these fees using the recommended Loose Cash Offering (or "Lucy Cash") envelope number of 999 (or whatever you use). The reason for this is that, as you said, its a registration fee, not a donation to the church directly although it is understood that all proceeds over and above costs are going to support missions. That said, I cannot see trying to figure out how much is 'tax deductible' and how much isn't, so why bother. The 10 bucks that may have been deductible probably will not affect anyone's taxes one way or the other :)
Neil Zampella

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