Tithe set aside from Contributions

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Mark Mediary
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Joined: Thu Aug 31, 2017 4:44 pm

Tithe set aside from Contributions

Post by Mark Mediary »

We are tithing all budgeted income to the Church, which we then set aside for donations to community organizations. I see the Automatic Transfers screen in Maintain Contribution Funds, but it's not quite what I need.

I want to pull 10% of 'Regular Contributions' and "Building Rentals' and 'Holiday/Loose Plate' Contribution Funds into a "Tithed Income" liability account. I don't want this for every income event, however. Just the Budgeted ones. I want to make this easy for my Financial Secretary and Counters who should be able to just enter contributions the way they do now. If I could enter multiple funds in the Automatic Transfer 'source' box that would be the cat's meow.

What seems like a good way to skin this cat?

Mark

NeilZ
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Re: Tithe set aside from Contributions

Post by NeilZ »

Mark Mediary wrote:We are tithing all budgeted income to the Church, which we then set aside for donations to community organizations. I see the Automatic Transfers screen in Maintain Contribution Funds, but it's not quite what I need.

I want to pull 10% of 'Regular Contributions' and "Building Rentals' and 'Holiday/Loose Plate' Contribution Funds into a "Tithed Income" liability account. I don't want this for every income event, however. Just the Budgeted ones. I want to make this easy for my Financial Secretary and Counters who should be able to just enter contributions the way they do now. If I could enter multiple funds in the Automatic Transfer 'source' box that would be the cat's meow.

What seems like a good way to skin this cat?

Mark
I'm assuming by 'budgeted events' you mean Chart of Accounts income accounts that are listed as having a budget setup for it.

The system was not setup to allow 'multiple' contribution funds to automatically 'contribute' into an individual contribution fund.

However, nothing says that you can't setup three 'office use only' contribution accounts that basically will take 10% of a fund, and put it in the liability account. I'm using three as you list three above.

So as an example, you have Contribution funds 100 (Regular Contributions), 110 (Rentals), 120 (Holiday/Loose), each of which will contribute 10% each deposit.

You create three "Tithing" funds: 10100 (Tithe of Contributions), 10110 (Tithe of Rentals), 10120 (Tithe of Loose) all pointing to the liability account and setup to take 10% of the corresponding (100, 110, 120) normal Contribution Funds. When Contributions are posted. the system will automatically create the transactions to move the funds.

Doe this work for you ??
Neil Zampella

Using PC+ since 1999.

Mark Mediary
Posts: 12
Joined: Thu Aug 31, 2017 4:44 pm

Re: Tithe set aside from Contributions

Post by Mark Mediary »

That works. As long as I can send the 10% to the same liability account, which I just set it up to do now.

Thanks!

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Tithe set aside from Contributions

Post by NeilZ »

Mark Mediary wrote:That works. As long as I can send the 10% to the same liability account, which I just set it up to do now.

Thanks!
Yep .. that shouldn't be an issue. We have three different 'contribution' funds going to one income account, and two others going to a 'pass thru' liability account.
Neil Zampella

Using PC+ since 1999.

Mark Mediary
Posts: 12
Joined: Thu Aug 31, 2017 4:44 pm

Re: Tithe set aside from Contributions

Post by Mark Mediary »

Just curious - how does all this play out on the Income/Expense report? Seems to me that I need an income account AND a liability account if I want to report it correctly. Does this show up on the Contributors' year end statement, as well? Now I'm having second thoughts about it all.

What I want to see for a $100 Weekly Contribution is:

$100 Income reported as such on the Income-Expense report.
$100 Contribution accrued to the envelope number and their Pledge diminished by the same amount.
$100 added to the balance of the checking account asset,
($90 available for operations expenses, $10 restricted to the Tithe accounts)

Don't I have to record the Tithe liability as an Expense somehow? I don't want to say that the Budgeted Income is 10% lower than the actual income, but that's the effect of siphoning off the tithe this way, right? I guess what it boils down to is I want this to be both a regular income account and a pass-through account at the same time. That can't be right.

Mark

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Tithe set aside from Contributions

Post by NeilZ »

Mark Mediary wrote:Just curious - how does all this play out on the Income/Expense report? Seems to me that I need an income account AND a liability account if I want to report it correctly. Does this show up on the Contributors' year end statement, as well? Now I'm having second thoughts about it all.
Well, I just answered the question you asked about using a liability account. If this is a budgeted expense, you should use an income account. If you want to restrict the funds for just this usage, that is, keep the funds separate from the normal operating funds, then I would use a temporarily restricted income account. You'd set this up using the 'Maintain Donor Restrictions' function. The Contribution Statement would show the original amount that was contributed to the fund. If you are 'tithing' from the Regular Tithes & Offerings, then they would see the $100 reflect as 'Regular Tithes".
What I want to see for a $100 Weekly Contribution is:

$100 Income reported as such on the Income-Expense report.
$100 Contribution accrued to the envelope number and their Pledge diminished by the same amount.
$100 added to the balance of the checking account asset,
($90 available for operations expenses, $10 restricted to the Tithe accounts)

Don't I have to record the Tithe liability as an Expense somehow? I don't want to say that the Budgeted Income is 10% lower than the actual income, but that's the effect of siphoning off the tithe this way, right? I guess what it boils down to is I want this to be both a regular income account and a pass-through account at the same time. That can't be right.

Mark
You're right, you can't make this an income and a pass-thru since you want this to be reflected as income and expense. Yes, the Budgeted income will reflect a 10% decrease. So you budget regular tithes at 90%, and budget 10% on this income.

You can't have it both ways. This is why I would use the temp restricted income account. You'd have to release the funds each time you sent donations from, but you'd have full accountability for income and expense.
Neil Zampella

Using PC+ since 1999.

Mark Mediary
Posts: 12
Joined: Thu Aug 31, 2017 4:44 pm

Re: Tithe set aside from Contributions

Post by Mark Mediary »

Oh, but I wannnaannt to have it both ways, Neil. (the whining now concludes and we move on...)

I will spend some time with the manual and come back to this when I am better acquainted with 'restricted income'.

Thanks again for your help.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Tithe set aside from Contributions

Post by NeilZ »

Mark Mediary wrote:Oh, but I wannnaannt to have it both ways, Neil. (the whining now concludes and we move on...)

I will spend some time with the manual and come back to this when I am better acquainted with 'restricted income'.

Thanks again for your help.
No problem, let me know what you decide as this is an interesting issue.
Neil Zampella

Using PC+ since 1999.

Mark Mediary
Posts: 12
Joined: Thu Aug 31, 2017 4:44 pm

Re: Tithe set aside from Contributions

Post by Mark Mediary »

Yep, this works out all the kinks by using 'restricted income'. Seems like I should have been doing that all along for a bunch of things we do.

https://www.powerchurch.com/files/acct4contrib.pdf was very helpful,
as was
https://www.powerchurch.com/support/186 ... -to-church
and
https://www.powerchurch.com/support/187 ... nd-it-ends

Cheers
Mark

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

Re: Tithe set aside from Contributions

Post by NeilZ »

Mark Mediary wrote:Yep, this works out all the kinks by using 'restricted income'. Seems like I should have been doing that all along for a bunch of things we do.

https://www.powerchurch.com/files/acct4contrib.pdf was very helpful,
as was
https://www.powerchurch.com/support/186 ... -to-church
and
https://www.powerchurch.com/support/187 ... nd-it-ends

Cheers
Mark
Glad to hear, just be aware that the first file was written for v10, and there have been a few changes in the way the accounts are now setup. Its much easier now.
Neil Zampella

Using PC+ since 1999.

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