Non Monetary Donation

Contributions, Faith Promises

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northside
Posts: 77
Joined: Thu Dec 22, 2016 11:22 am

Non Monetary Donation

Post by northside »

Is there a way to post a non monetary donation to someone contribution statement?

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Non Monetary Donation

Post by NeilZ »

northside wrote:Is there a way to post a non monetary donation to someone contribution statement?
Not really. The statement is setup for monetary donations.

I usually advise that you issue a receipt on church letterhead listing the approximate cost of the donation.

For instance, if someone gave a TV, it would look something like this:

Dear Jack & Jane Jones,

Thank you for your gracious donation of the Sharp 42" LCD TV valued at $599.00 for our Youth Room given on February 28, 2017.

etc,etc, etc.
Neil Zampella

Using PC+ since 1999.

northside
Posts: 77
Joined: Thu Dec 22, 2016 11:22 am

Re: Non Monetary Donation

Post by northside »

Thanks!

bookkeeper@eastrose.org
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Joined: Fri Apr 10, 2015 1:11 pm

Re: Non Monetary Donation

Post by bookkeeper@eastrose.org »

In the chart of accounts we set up a line item in Misc. Income for In-Kind Unreimbursed Donations and a second line called Balancing In-Kind Donations. In the contribution side, we had those non-cash contributions entered in a contribution fund that debited one line item and credited the other line item -- not using any banking entry. In effect, you get the total on your reports, but it is zeroed out automatically for budget and income purposes. We list the purpose of the donation (Landscaping, auction, coffee and tea, etc) in the comments so that committee chairs can see the non-cash contributions to their projects. Starting the 3rd year right now. On contributions, you also need to add the category of "In-Kind" to the list of cash, check, etc.
Those donations have to be supported by receipts or for large items, the donor has to assign a value (we're working on 2 gift pianos right now.) Then the amounts show on the contribution statements along with pledge, and other donations. Busy committee chairs get all their tax info in one place.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Non Monetary Donation

Post by NeilZ »

The reason I don't recommend this method is because of the fact that the IRS requires the donor to set the amount of the contribution, listing it on a Contribution statements makes it look like the church is the one setting the amount, even though the church has documentation to show that was the amount set by the donor.

Just a can of worms that many congregations may not want to get involved with. The letter of thanks serves the purpose of acknowledging the gift, but then requires the donor to maintain the documentation on value.
Neil Zampella

Using PC+ since 1999.

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