Posting contributions which involve receipts of property

[rlmcculley]

I will be making a series of posts so that I don't muddy the waters by asking multiple questions in the same post.

At this point I use only the Membership & Contribution modules of PC+. I am not skilled enough to use the Accounting module.

We are preparing to build a new church facility and after purchasing the land that the new church will be built on we have sold a garage door from a garage that has now been leveled to make way for construction of the new building.

This door was purchased by a church member contributor and the check was made out to the church in the amount of $50 for the door. How should I post this? If I record it as a contribution I can hardly state in the bottom portion of the yearly giving statement that "no goods or services were received for the above donations" can I? Do I need to have two(2) envelope numbers for the same donor? One for "tangible gifts" and the other for "general fund"?

This issue runs deeper than this, but I will save that for a future post.

Thanks for your help . . .

[NeilZ]

I will be making a series of posts so that I don't muddy the waters by asking multiple questions in the same post.

At this point I use only the Membership & Contribution modules of PC+. I am not skilled enough to use the Accounting module.

We are preparing to build a new church facility and after purchasing the land that the new church will be built on we have sold a garage door from a garage that has now been leveled to make way for construction of the new building.

This door was purchased by a church member contributor and the check was made out to the church in the amount of $50 for the door. How should I post this? If I record it as a contribution I can hardly state in the bottom portion of the yearly giving statement that "no goods or services were received for the above donations" can I? Do I need to have two(2) envelope numbers for the same donor? One for "tangible gifts" and the other for "general fund"?

This issue runs deeper than this, but I will save that for a future post.

Thanks for your help . . .

Its not a contribution because he received goods for his $50. I would assume that a replacement garage door, if he so wanted to, would have cost him alot more than 50 bucks, so he did receive a tangable benefit for his money. It should not be entered into the contributions system. It should be deposited separately from the contributions, and your treasurer should track it as a non-contribution income.

[jeffkoke]

This door was purchased by a church member contributor and the check was made out to the church in the amount of $50 for the door. How should I post this? If I record it as a contribution I can hardly state in the bottom portion of the yearly giving statement that "no goods or services were received for the above donations" can I? Do I need to have two(2) envelope numbers for the same donor? One for "tangible gifts" and the other for "general fund"?

This issue runs deeper than this, but I will save that for a future post.

Thanks for your help . . .

Richard,

Per IRS regulations, this a non-contributional transaction.

What we do is this:
1. All non-contributional funds begin at 500 (and go up)
2. We have non-contributional funds for each major ministry
3. At the end of the year, we print the contribution reports specifying a range from fund #1 through #499.

We add a final paragraph (before the treasurer's signature) that says in part, "NO GOODS OR SERVICES WERE PROVIDED FOR THE ABOVE CONTRIBUTIONS."

Make sense?

Jeff

[Randy B]

Two resources to have on-hand are IRS publication 1828 for churches and IRS publication 526 for charitable contributions. As others have stated, this is not something the person buying the door could get a tax deduction for unless the value of the door is under $50.

I personally just use the non designated envelope so there is no confusion at year end and the amount would be placed in Misc Income.