As many churches do, we gave donations to other nonprofit organizations. One organization was involved in litigation over its financial practices. As a result, money that we have donated over the years has been returned to us. The simple thing seems to be to credit an income account.... But it's not really additional income. Any thoughts on what account could be credited besides income (an equity account), or should we just record it as income?
David
Donation Returned: what account to credit
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Donation Returned: what account to credit
David Hagey, Pastor
Penn Valley Community Church
Penn Valley, California
Penn Valley Community Church
Penn Valley, California
Re: Donation Returned: what account to credit
In reality, you would need to reflect it in the checking account, but also in any expense account if funds were returned in the same year.PVCC wrote:As many churches do, we gave donations to other nonprofit organizations. One organization was involved in litigation over its financial practices. As a result, money that we have donated over the years has been returned to us. The simple thing seems to be to credit an income account.... But it's not really additional income. Any thoughts on what account could be credited besides income (an equity account), or should we just record it as income?
David
However, churches are cash based. The funds were 'spent' in the year it was budgeted for. These funds coming back to you in the new year, are income to this year.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: Donation Returned: what account to credit
Got it, thanks Neil
David Hagey, Pastor
Penn Valley Community Church
Penn Valley, California
Penn Valley Community Church
Penn Valley, California