Pledge payment received but no tax credit to be given

Postby sojorner » Sat Jun 08, 2019 8:44 am

HI,
We have a situation where an individual pre-paid their pledge for next FY. Generally pledges (current year and pre-paid) are posted in a pledge contribution fund that is marked as reportable on their annual statement used for tax purposes. In this case, however, the individual had made the payment from their individual charitable investment fund. The letter that accompanied the check stated they are not to be given tax deduction credit for the money, as it is already a tax deduction via this charitable fund.
Since the pledge contributions fund in PowerChurch has been set up to report pledges on each individual's statement, is there a way to post this so that it:
a ) shows up in the pledge fund,
b) recognize that the individual kept their pledge, but,
b) will not show on this individual's contribution statement for tax purposes?

thanks
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Re: Pledge payment received but no tax credit to be given

Postby NeilZ » Sun Jun 09, 2019 9:03 pm

sojorner wrote:HI,
We have a situation where an individual pre-paid their pledge for next FY. Generally pledges (current year and pre-paid) are posted in a pledge contribution fund that is marked as reportable on their annual statement used for tax purposes. In this case, however, the individual had made the payment from their individual charitable investment fund. The letter that accompanied the check stated they are not to be given tax deduction credit for the money, as it is already a tax deduction via this charitable fund.
Since the pledge contributions fund in PowerChurch has been set up to report pledges on each individual's statement, is there a way to post this so that it:
a ) shows up in the pledge fund,
b) recognize that the individual kept their pledge, but,
b) will not show on this individual's contribution statement for tax purposes?

thanks


In a word ... no.

The reason being is that the Contribution Fund is setup to display on the Contribution Statement as tax deductible.

What you can do is this:

1. Enter the amount as a pledge start balance on the donor's Pledge for next year. This will show that the pledge is fulfilled for next year.
2. Enter the amount in the LOOSE CASH envelope number under that fund. The loose cash envelope should not have any pledges so it won't show as a pledge fulfilled. This will also not show on any statement other than the loose cash envelope.

Neil Zampella

Using PC+ since 1999.
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Re: Pledge payment received but no tax credit to be given

Postby pdumm » Sun Nov 10, 2019 7:12 pm

I have the same situation-- many people are making use of Donor Advised Funds to get a one-time lump sum tax benefit, then money is distributed to us over time. I can't send a typical end-of-year contribution statement, since this contribution is not tax deductible, but I'd like to recognize the donations at the end of the year. Can I set up a DAF Fund in Powerchurch out of which a different contribution letter is generated to each person who donates that way?

Thanks!
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Re: Pledge payment received but no tax credit to be given

Postby NeilZ » Sun Nov 10, 2019 7:23 pm

pdumm wrote:I have the same situation-- many people are making use of Donor Advised Funds to get a one-time lump sum tax benefit, then money is distributed to us over time. I can't send a typical end-of-year contribution statement, since this contribution is not tax deductible, but I'd like to recognize the donations at the end of the year. Can I set up a DAF Fund in Powerchurch out of which a different contribution letter is generated to each person who donates that way?

Thanks!


I'm not an accountant ... but if the donor gets a one time tax benefit how do they value that tax deduction? That is the amount you need to reflect on the Contribution Statement. No need to have a separate letter, just setup the Contribution Fund without any Fund Accounting accounts entered in the setup.

When the funds do come in, you just 'deposit' them using a transaction in Funds Accounting. I'm assuming these funds come in as direct deposits to the bank account.

Neil Zampella

Using PC+ since 1999.
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