Year End Contribution

[SecondPres]

Per, IRS, an individual can postmark a contribution 12/31/24 and the church can receive it on 1/3/25 and the contribution is considered a donation for 2024. Generally we post the contribution on the statement with the date of 12/31/24.

Do you folks post the income also to 2024? Clearly the check won't get to the bank until 2025, so I'd need to adjust the deposit date in PowerChurch?

One challenge we have are Vanco contributions. The donor made the contribution on 12/31/24, but it's not yet posting through the import. I believe I will need to change the date on the import to match the donor's 2024 intent?

[NeilZ]

Per, IRS, an individual can postmark a contribution 12/31/24 and the church can receive it on 1/3/25 and the contribution is considered a donation for 2024. Generally we post the contribution on the statement with the date of 12/31/24.

Do you folks post the income also to 2024? Clearly the check won't get to the bank until 2025, so I'd need to adjust the deposit date in PowerChurch?

One challenge we have are Vanco contributions. The donor made the contribution on 12/31/24, but it's not yet posting through the import. I believe I will need to change the date on the import to match the donor's 2024 intent?

Here's some advice about this ... note the 'credit card' rule:

https://www.clergyfinancial.com/charita ... ery-rules/

That said, while the contribution can be marked for 2024, the deposit is done in 2025. Churches are run on a cash basis, and the date the funds are deposited in the bank, is the date you use in Powerchurch. Otherwise, you will be completely out of sync with the bank statements.

[sgbani]

being out of sync with the bank statement happens often enough throughout the year when Sunday offerings are marked as received on Sunday, but the actual deposit date (next business day) recognized by the bank is the next month. (think June 2024 as an example)
so, in that way, for contributions, we work on when the contributions are received, not deposited, since that is usually the next business day.

In such cases, the one processing the contributions simply has to be aware when reconciling the month that they will be off from the monthly bank statement by that last end-of-month contribution total. Likewise, the next month reconciliation will be off by the same amount in the opposite direction. End of the year is no different.
That is also the premise for communicate that our online / electronic giving options are preferred because then the money arrives properly on the correct date without issue. Keeps it cleaner and easier for reconciliation.

[sgbani]

One challenge we have are Vanco contributions. The donor made the contribution on 12/31/24, but it's not yet posting through the import. I believe I will need to change the date on the import to match the donor's 2024 intent?

For Vanco contributions, at our church, we use the date in the Vanco import for the date of receipt (which is the deposit date). Receiving the funds via ACH, to us, is no different than being handed a check or cash on that day, and that is the day we have effectively accepted such funds.

[NeilZ]

being out of sync with the bank statement happens often enough throughout the year when Sunday offerings are marked as received on Sunday, but the actual deposit date (next business day) recognized by the bank is the next month. (think June 2024 as an example)
so, in that way, for contributions, we work on when the contributions are received, not deposited, since that is usually the next business day.

In such cases, the one processing the contributions simply has to be aware when reconciling the month that they will be off from the monthly bank statement by that last end-of-month contribution total. Likewise, the next month reconciliation will be off by the same amount in the opposite direction. End of the year is no different.
That is also the premise for communicate that our online / electronic giving options are preferred because then the money arrives properly on the correct date without issue. Keeps it cleaner and easier for reconciliation.

FWIW ... the easiest way to handle that discrepancy, is to not post the Contributions in Funds Accounting until the next day, usually Monday. You can post Contributions, just don't post In Funds Accounting.

[SecondPres]

being out of sync with the bank statement happens often enough throughout the year when Sunday offerings are marked as received on Sunday, but the actual deposit date (next business day) recognized by the bank is the next month. (think June 2024 as an example)
so, in that way, for contributions, we work on when the contributions are received, not deposited, since that is usually the next business day.

In such cases, the one processing the contributions simply has to be aware when reconciling the month that they will be off from the monthly bank statement by that last end-of-month contribution total. Likewise, the next month reconciliation will be off by the same amount in the opposite direction. End of the year is no different.
That is also the premise for communicate that our online / electronic giving options are preferred because then the money arrives properly on the correct date without issue. Keeps it cleaner and easier for reconciliation.

Thank you! Our deposit will go to the bank on 01/06/25. It appears I can date the journal entry 01/06/25 and designate the posting month as December 2024. I have never dated an item differently thank the posting month. I ran reports and it appears it will work. Have you ever done something similar? Thank you!