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We had a church member that passed away and has given the church some money.

What is the best way to show that money?

northside wrote:We had a church member that passed away and has given the church some money.

What is the best way to show that money?

Are there restrictions on the bequest? If not, its normal income for the church. You can create a new Income Account (4000 level) under unrestricted income for 'Bequests', and show it there. You'd create the deposit transaction by using the Fund Accounting - Enter Transaction function.

If there is a restriction, that is, if it can't be used for anything but a certain ministry, or music, and so on, then its Temp Restricted Income, and you have to create a Donor Restriction.

Thanks! It is not designated.

I appreciated your help!

Do you have this person set up in your database as a contributor? If so, you would probably want to enter this through contributions (with a bequest contribution fund, as Neil suggested, if you like) since their estate (or whatever) may have to file a tax return at the end of the year. That way, you can show it on their contribution record.

beas wrote:Do you have this person set up in your database as a contributor? If so, you would probably want to enter this through contributions (with a bequest contribution fund, as Neil suggested, if you like) since their estate (or whatever) may have to file a tax return at the end of the year. That way, you can show it on their contribution record.

I would only setup a Contribution Fund pointing to this if you have a lot of these. I'm assuming that the executor is properly fulfilling the terms of the will, so the will requirements can be used as a source document for taxes. Still, there are a few ways to do this.

These are listed from the easiest to the hardest:

1. Write a letter to the estate on letterhead thanking the estate "for fulfilling the bequest of Mrs X to My Church for $xxxx.xx " I recommend this for all types of bequests/gifts as they see an instant receipt. For gifts of money, you can include the amount given, on gifts of tangible goods, all you need is include the description of the item per IRS. The donor then enters the cost if they're going to use it on their taxes.

2. Post contributions for the week, then enter the amount under Mrs. X envelope as normal tithes & offerings and add a memo that this was a final bequest. Post this to CONTRIBUTIONS ONLY, and it will show up on the Contributions Statement. You do this after you enter the transaction in Funds Accounting.

3. Create a Contribution Fund pointing at the bequest account in Funds Accounting, and enter the amount through that new fund. Again, if you expect a lot of such bequests, add the fund.