expense account for temp restricted contribution
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expense account for temp restricted contribution
Receive contributions for Missions which is set up as a temp restricted account. When writing out a check for an amount that was given for a designated missionary, the money is released and the missions expense is used. However, this money is not part of the budgeted amount for missions and makes the budget appear to be over when it's not. How do I "fix" this?
Re: expense account for temp restricted contribution
There's a few things you have to consider here:bsbrown wrote:Receive contributions for Missions which is set up as a temp restricted account. When writing out a check for an amount that was given for a designated missionary, the money is released and the missions expense is used. However, this money is not part of the budgeted amount for missions and makes the budget appear to be over when it's not. How do I "fix" this?
1st: such contributions that are given to support a designated person, cannot be listed on the Contributions Statement as a deductible donation, per IRS rules. If the funds are given to the general Missions fund, and then your local missions committee supports a specific missionary from those funds, then they are deductible. Just some background on this to save your church from any issues over this type of giving.
2nd: The funds, since they are designated to support a specific missionary, should have been put in a liability account, as this could be considered a pass-thru since the church has not budgeted funds for this, and the church is merely the conduit. In this case, there is no expense account needed since on the check you credit checking and debit the liability.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: expense account for temp restricted contribution
thanks Neil. That's what I needed. These are contributions to missionaries the church supports.