Contributions Module

[FBCro]

I'm fairly new to bookkeeping and PowerChurch and not sure how to handle this situation. In our Contribution Module we have Tithes and Offerings, Missions, Youth and a few more items. An individual last month gave $2,500 to help replace the flooring in the Youth Hall. We do not have an item in the Contribution Module for Remodeling or special projects. I put it in Tithes and Offerings and wrote in the Memo what it was for. I then created an account 4509 in Misc. Income and listed it Youth Hall flooring. I'm not sure this is the best. Should I create a Fund in the Contribution Module and label it Remodeling so that it will show properly on the individuals giving statement? Our Church has always printed the contribution posting and in Fund Accounting entered the items to the various accounts 4100 for tithes and offerings, 4102 for Missions and so forth for our Deposit. Should I also create a 4100 number for Remodeling offerings so that the funds will show under Total Contributions on the Income Statement. The Account number I created under misc. Income 4509 doesn't fall under Total Contributions. Thanks for your help

[NeilZ]

I'm fairly new to bookkeeping and PowerChurch and not sure how to handle this situation. In our Contribution Module we have Tithes and Offerings, Missions, Youth and a few more items. An individual last month gave $2,500 to help replace the flooring in the Youth Hall. We do not have an item in the Contribution Module for Remodeling or special projects. I put it in Tithes and Offerings and wrote in the Memo what it was for. I then created an account 4509 in Misc. Income and listed it Youth Hall flooring. I'm not sure this is the best. Should I create a Fund in the Contribution Module and label it Remodeling so that it will show properly on the individuals giving statement? Our Church has always printed the contribution posting and in Fund Accounting entered the items to the various accounts 4100 for tithes and offerings, 4102 for Missions and so forth for our Deposit. Should I also create a 4100 number for Remodeling offerings so that the funds will show under Total Contributions on the Income Statement. The Account number I created under misc. Income 4509 doesn't fall under Total Contributions. Thanks for your help

There are two different issues here, for two different areas.

The first is the Contributions. I take it you do not have any sort of Contribution Fund for Building donations? Perhaps you should create one for this sort of contributions that support Building maintenance?

The next is Fund Accounting. Apparently you have your 4100 series setup for unrestricted contributions income, is that correct? What is 4500 series used for?

All that relates to the question I'm now going to ask. Is this donation restricted to one purpose only and should not be used for anything else?

Answers to those questions, will give me a better idea of what to advise.

[FBCro]

We do have a Building Fund to track contributions. The membership voted last year to use all contributions to this fund to apply to the principal of the loan. I write a check at the end of each month to the bank for the principal. Also the loan note is through this account and ends the year with a large negative balance that is zeroed out with transfer from the Gen. Fund.

The 4100 series is unrestricted contributions. The 4500's are mostly Misc. income accounts not used much such as Gift offerings, Rebates, etc.

The $2,500 donation was given for the floors only, however, the Church sold a piece of land that was part of the overall loan. The bank set up an escrow for a portion of the funds for the Church to use for repairs. Once the Church pays for the repairs, the bank transfers that amount from escrow to the Church checking account. The floors will be handled through the escrow. Thanks for your help.

[NeilZ]

We do have a Building Fund to track contributions. The membership voted last year to use all contributions to this fund to apply to the principal of the loan. I write a check at the end of each month to the bank for the principal. Also the loan note is through this account and ends the year with a large negative balance that is zeroed out with transfer from the Gen. Fund.

The 4100 series is unrestricted contributions. The 4500's are mostly Misc. income accounts not used much such as Gift offerings, Rebates, etc.

The $2,500 donation was given for the floors only, however, the Church sold a piece of land that was part of the overall loan. The bank set up an escrow for a portion of the funds for the Church to use for repairs. Once the Church pays for the repairs, the bank transfers that amount from escrow to the Church checking account. The floors will be handled through the escrow. Thanks for your help.

OK ... I guess that means you're OK with what you did.

[FBCro]

I don't know enough about it to know if I am happy with how I have handled it. The Church lost its Bookkeeper last December and couldn't afford to hire one at that time and asked me if I would volunteer to work 2 days a week to try to learn PowerChurch and handle the books. I'm just trying to work with what I was given and wanting to do what is right. If you have any recommendations on how I should handle this I would greatly appreciate it or if you think what I have done is ok that will work too.

[NeilZ]

I don't know enough about it to know if I am happy with how I have handled it. The Church lost its Bookkeeper last December and couldn't afford to hire one at that time and asked me if I would volunteer to work 2 days a week to try to learn PowerChurch and handle the books. I'm just trying to work with what I was given and wanting to do what is right. If you have any recommendations on how I should handle this I would greatly appreciate it or if you think what I have done is ok that will work too.

The problem is that the people donated toward repair of the floor. Even though the church has money set aside, it should use this money first as it is a 'donor restriction'. That said, as long as you have annotated on the gift as 'toward the floor' when you entered the contribution, this will be included when you print the statement with full details.

I would leave the funds where they are in Accounting, and let the church board know about it. Then when paying any bills toward the floor, pay the first $2,500 from your regular checking, and everything else from the proceeds of the land sale.

I would also ask the church board if they would pay for the video training that's offered here, specifically the videos on Contributions, Intro to Accounting, and Fund Accounting. Its well worth the price. You may also want to consider the other accounting related training on Accounts Payable and Payroll if necessary.

[FBCro]

That will work. I will advise board to pay the first $2500 from the donation and remainder from escrow. Thanks for your recommendations. I will ask the board about further training.