Contributions Beginning Balances Adjustment

[bjsbrown65]

A member wants credit for a contribution in 2013 but since this was not known when we set up power church, there was no beginning balance for contributions entered What is the correct way to enter this? Thank you.

[NeilZ]

A member wants credit for a contribution in 2013 but since this was not known when we set up power church, there was no beginning balance for contributions entered What is the correct way to enter this? Thank you.

You don't. If there are no other contributions entered in 2013 for anyone else, why bother. Just write a letter on church letterhead acknowledging the contribution, with the standard boilerplate paragraph:

"This Contribution Statement satisfies the IRS requirement for a written receipt of contributions: My City Church states that the contributor has only received intangible religious benefits in exchange for their contributions, and no goods or services have been provided."

As far as a 'beginning balance' for contributions, that is also a non-issue, as any contributions would have already been accounted for in the beginning balance entered from the checking account balance as of Jan 1st.

[bjsbrown65]

I didn't explain this very well. The check was deposited after January 1, 2014 so to give him credit in 2013 as he requested, we have to account for the contribution, don't we. That is why I asked if we could make a contribution beginning balance adjustment.

[NeilZ]

I didn't explain this very well. The check was deposited after January 1, 2014 so to give him credit in 2013 as he requested, we have to account for the contribution, don't we. That is why I asked if we could make a contribution beginning balance adjustment.

You really can't show this as being part of his 2014 contributions in Contributions, as you already gave the person credit in 2013.

You can do one of two things:

1. Enter the check under the Loose Cash envelope (https://www.powerchurch.com/support/kb. ... 153&type=2 - look under the 'Pennies from Heaven' paragraph for an explanation) and post it from there. This will update the Contributions Funds balance to reflect that contribution in Contributions. When you post to Funds Accounting, it will update the proper Income account.

2. Just enter a manual transaction in Funds Accounting to update the checking account and the income account. This will not update the Contribution Funds totals in Contributions.

FWIW ... we make it known starting two weeks prior to the end of the year, that any contributions that the donor wants to show in the current year, has to be in to the office prior to Dec 31st so it can be deposited at COB. If the 31st falls on a Sunday, we make sure the deposit is made at the bank's deposit drop.
Anything received after that, is reflected in the next year.

[tborgal]

Following up on Neil's response. When did you physically receive the contribution?