Applying a designated contribution to a transaction

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VITWC
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Applying a designated contribution to a transaction

Post by VITWC »

How do I apply a designated contribution to a transaction

NeilZ
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Re: Applying a designated contribution to a transaction

Post by NeilZ »

VITWC wrote:How do I apply a designated contribution to a transaction
Um ... could you be more specific? I'm not sure if this is more about contributions, funds accounting, or accounts payable.

I'll start with the contribution:

Is this contribution considered restricted income? That is, it can only be used for a specific function? If so, it should have been entered via contributions as a normal contribution but entered in a Contribution Fund that is connected to a Temp Restricted Income account in Funds Accounting.

In Funds Accounting:
You should have created a Donor Restriction of accounts using the Maintain List of Donor Restrictions function. This allows you to create the income, equity/funds balance/net asset account, and the release account. You can then connect the newly created income account to the Contribution Fund used above. Obviously, this should be done prior to receiving any donor restricted funds.

In Accounts Payable:
When your congregation decides to spend these designated funds, you would enter the invoice as normal, using the usual checking account, and the proper expense account, then click on the Release Restricted Funds button at the bottom of the invoice. You would then see the list of restricted funds pop up in a windows. You'd select the proper temp restricted fund account, enter the amount to be released, and then click on finish. The system will enter the proper transactions to the invoice, and the funds will be properly released.

Does this help?
Neil Zampella

Using PC+ since 1999.

VITWC
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Joined: Mon Jul 16, 2018 2:45 pm

Re: Applying a designated contribution to a transaction

Post by VITWC »

I am referring to the new ability to add a designated contribution without going thru the restricted/unrestricted procedure. I found a video on how to set it up and when entering contributions to choose the designation. However I am unable to find nor do I see an option when entering transactions to access the contributions

NeilZ
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Location: Dexter NM
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Re: Applying a designated contribution to a transaction

Post by NeilZ »

VITWC wrote:I am referring to the new ability to add a designated contribution without going thru the restricted/unrestricted procedure. I found a video on how to set it up and when entering contributions to choose the designation. However I am unable to find nor do I see an option when entering transactions to access the contributions
A designation in Contributions adds the capability to track contributions given toward standard contribution funds, such as tithes and offerings, but in 'memory of' or 'in honor' of someone, and so on. It allows you to generate reports about such designations in Contributions, but does not do anything else.

The Contributions are probably totaled in the standard income accounts, as such, there is no 'designation' to choose from. If you have to show that designated funds are being used, you have to use Temp Restricted accounts which allow for this.

You don't have to create a separate temp restricted fund for every such designation. Here is where the Contribution Designation can be used to your advantage.

Real world example: at my church, we have setup a single Temp Restricted Account for Memorials. While we discourage designated giving for specific things, we do recommend to people things that the church needs.

When we enter such memorials, we add the designation in Contributions that it was given in memory of the person. All the funds go into the temp restricted income account. We then run the Designated Contributions report to see the total, we then purchase what we need, and we release the amount given when we create the invoice.
Neil Zampella

Using PC+ since 1999.

VITWC
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Joined: Mon Jul 16, 2018 2:45 pm

Re: Applying a designated contribution to a transaction

Post by VITWC »

When the enter contribution screen is accessed. there is a choice given, if it has been set up to click on the arrow which brings up a menu of the designated contributions available. One can choose none or any or the ones set up. Any contributions for one of the purposes set up are recorded and a running total is kept, which also shows who gave what.

That part, having been done, the money comes in to accomplish the project. the bill comes in. However I cannot find how to show the funds used.

The way the video showed on how to set it up did not get into how to access the funds and use them.

Hope this help explain better what I am speaking of.

NeilZ
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Location: Dexter NM
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Re: Applying a designated contribution to a transaction

Post by NeilZ »

VITWC wrote:When the enter contribution screen is accessed. there is a choice given, if it has been set up to click on the arrow which brings up a menu of the designated contributions available. One can choose none or any or the ones set up. Any contributions for one of the purposes set up are recorded and a running total is kept, which also shows who gave what.

That part, having been done, the money comes in to accomplish the project. the bill comes in. However I cannot find how to show the funds used.

The way the video showed on how to set it up did not get into how to access the funds and use them.

Hope this help explain better what I am speaking of.
Please read what I said above.
NeilZ wrote: If you have to show that designated funds are being used, you have to use Temp Restricted accounts which allow for this.
The only thing the designated contribution list does is add a note to the contribution, it does nothing else, and this note remains in Contributions and means absolutely NOTHING in Funds Accounting/Accounts Payable.
Neil Zampella

Using PC+ since 1999.

VITWC
Posts: 5
Joined: Mon Jul 16, 2018 2:45 pm

Re: Applying a designated contribution to a transaction

Post by VITWC »

Based on what you are saying the video I watched gives the wrong impression about the use of the designated funds option.

How does one then delete the thing in the contributions module when the project is accomplished. When I try to delete a message says something like, that it cannot be deleted because it is tied to other things.

I am not a bookkeeper or accountant so I may be slow to grasp how this works. Appreciate your help.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Applying a designated contribution to a transaction

Post by NeilZ »

VITWC wrote:Based on what you are saying the video I watched gives the wrong impression about the use of the designated funds option.

How does one then delete the thing in the contributions module when the project is accomplished. When I try to delete a message says something like, that it cannot be deleted because it is tied to other things.

I am not a bookkeeper or accountant so I may be slow to grasp how this works. Appreciate your help.
You can't delete it, its a note that is tagged with all contributions given against that designation. All you can do is change the status of the designation to 'not active' and it will not appear in the drop down list.

Just wondering where did you view this video?
Neil Zampella

Using PC+ since 1999.

VITWC
Posts: 5
Joined: Mon Jul 16, 2018 2:45 pm

Re: Applying a designated contribution to a transaction

Post by VITWC »

on the Power Church knowledge base, it is about four minutes long

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