Quid Pro Quo Conributions

[kirkre]

IRS Pub. 1828 states that a church must provide a written statement to a donor who makes a payment exceeding $75 partly as a contribution and partly for goods or services provided by the organization. What is the best way to differentiate this in the PowerChurch contribution module so that the year end contribution statement accurately reflects the deductible and non-deductible contributions?

[NeilZ]

IRS Pub. 1828 states that a church must provide a written statement to a donor who makes a payment exceeding $75 partly as a contribution and partly for goods or services provided by the organization. What is the best way to differentiate this in the PowerChurch contribution module so that the year end contribution statement accurately reflects the deductible and non-deductible contributions?

The easiest way for tracking and reporting, can be a pain to enter.

Setup two separate Contribution Funds:

1. Is deductible - in version 11 you can set this when you setup the Contribution Fund. In version 10, you would put this in as part of the number series that you select for the Contribution Reports. You would then select the income account you want this to show up in.

2. Is not deductible - again in version 11 you can set this when you setup the fund, in version 10 you will need to put this fund in a number series that you can exclude from the Contribution Report. Again, you would select the income account you want this to appear in.

The issue is that you need to know the exact amounts to be put in each fund.

IE: Fund 101 - deductible, Fund 901 - non-deductible, Item price $35 - of which 10 covers costs

You would enter $25 for fund 101, and $10 for fund 901

When printing Contribution Reports, in version 11, the non-deductible amount/fund would never appear since in setup you did not select the Deductible checkbox. In v10, you would select the funds to include by excluding fund numbers over 900.