contribution using charitable donation

Contributions, Faith Promises

contribution using charitable donation

Postby whfpc » Tue Jul 02, 2019 10:37 am

I am really not sure the subject is clear but here goes. PC v12 here,

1. If we have a member that "pledges" to a fund or funds then pays that pledge with an investment company how do I count this as contributions, and have it show up as a pledged amount for each fund but not show on their contribution statement. ie. $14.000 from Allen & Company from Joe Smith to pay for 1. pledge, 2. music campaign, 3. pastors fund designation, and so on.

2.And we run a soup kitchen, every Saturday volunteers will buy, cook and serve food for the homeless. Most will get reimbursements but some (members and non members) will turn in receipts and say keep it as a donation. I understand we should write a check and they need to sign the back, and we will then deposit. This is somewhat easier for a member but a non member will usually just drop the receipt and go. What do we do with those refusing a check or reimbursement? Is there a way to do this and show that expense for the soup kitchen?

Not sure if I made myself clear.......

Robin
whfpc
 
Posts: 85
Joined: Tue Aug 15, 2017 10:32 am

Re: contribution using charitable donation

Postby NeilZ » Tue Jul 02, 2019 3:57 pm

whfpc wrote:I am really not sure the subject is clear but here goes. PC v12 here,

1. If we have a member that "pledges" to a fund or funds then pays that pledge with an investment company how do I count this as contributions, and have it show up as a pledged amount for each fund but not show on their contribution statement. ie. $14.000 from Allen & Company from Joe Smith to pay for 1. pledge, 2. music campaign, 3. pastors fund designation, and so on.


Why wouldn't you want the payment on the Contribution Statement? From what you're saying its obvious that the donor is withdrawing funds from his investments to cover his pledges.

2.And we run a soup kitchen, every Saturday volunteers will buy, cook and serve food for the homeless. Most will get reimbursements but some (members and non members) will turn in receipts and say keep it as a donation. I understand we should write a check and they need to sign the back, and we will then deposit. This is somewhat easier for a member but a non member will usually just drop the receipt and go. What do we do with those refusing a check or reimbursement? Is there a way to do this and show that expense for the soup kitchen?

Not sure if I made myself clear.......

Robin


I guess that the donors are thinking that this could be a deduction off their taxes? FWIW .. the IRS says that unless the non-cash donation is more than $250.00, the church does not have to acknowledge the donation (IRS Pub 1771).

FWIW .. there is no easy way to track this. Some do issue a check then have it signed back to the church, its a lot of work but its the only way you can actually expense the activity.

I think the best way to handle this is to have your church board create a policy that if members are going to spend money to buy items that the church would normally buy, they MUST be reimbursed for the purchase. No "ifs" "ands" or "buts".

In order to sell this they have to say that this is the only way we can track the actual costs of this mission activity. If they then want to sign the check back to the church, or write a check for the money received in addition to their normal giving, then fine that will show up on the statement.

However, too many times people do this, but then do not give their normal operating giving. I, myself prefer the church buys all supplies for such an activity, and have people give their donations on Sunday in their envelopes.

Neil Zampella

Using PC+ since 1999.
NeilZ
 
Posts: 8906
Joined: Wed Oct 08, 2003 12:20 am
Location: Connellsville, PA

Re: contribution using charitable donation

Postby whfpc » Wed Jul 03, 2019 10:56 am

Ok, what about someone who had funds leftover from a campaign and was told they could donate to a 501c3? Can he use that donation to cover a music campaign pledge? And should that show on the statement?

Robin
whfpc
 
Posts: 85
Joined: Tue Aug 15, 2017 10:32 am

Re: contribution using charitable donation

Postby NeilZ » Wed Jul 03, 2019 11:58 am

whfpc wrote:Ok, what about someone who had funds leftover from a campaign and was told they could donate to a 501c3? Can he use that donation to cover a music campaign pledge? And should that show on the statement?

Robin


If you have a donor that could/would do that, then I'd definitely check with a good tax accountant to see exactly who to credit, the donor, or his political campaign.

In the case you presented, I'm again assuming that the investment firm is using funds provided by the donor or investment income that the donor would usually receive as dividends or reinvestment capital. All the church needs to be concerned about is that the donor is directing where the funds are going, not who is writing the check. In this case it is not the church's responsibility to figure out who gets the deduction, that's between the donor and the IRS auditors. However, if the investment firm was sending a check, but not stipulating who is behind the donations, then the investment firm should get a statement for their tax records.

If you have concerns, I would check with a local tax accountant.

Neil Zampella

Using PC+ since 1999.
NeilZ
 
Posts: 8906
Joined: Wed Oct 08, 2003 12:20 am
Location: Connellsville, PA