Pledges

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NNBCdmh
Posts: 8
Joined: Wed Mar 13, 2019 10:34 am

Pledges

Post by NNBCdmh »

I have a member who makes a weekly pledge throughout the year. At some point during the year he makes a stock transfer to an account to the 02 fund (01 is our general checking account). For example he pledges 300 each week for first half of year; then increases to $400 a week and finally 600 each week. What is the appropriate way to post this? I have it set up correctly in the maintain pledges and ended up posting a lump sump during each pledge date totally the 21,000 he has pledged. But, I'm having problems transferring from the general fund to the 02 fund. Just not sure what I'm doing wrong.

NeilZ
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Re: Pledges

Post by NeilZ »

NNBCdmh wrote:I have a member who makes a weekly pledge throughout the year. At some point during the year he makes a stock transfer to an account to the 02 fund (01 is our general checking account). For example he pledges 300 each week for first half of year; then increases to $400 a week and finally 600 each week. What is the appropriate way to post this? I have it set up correctly in the maintain pledges and ended up posting a lump sump during each pledge date totally the 21,000 he has pledged. But, I'm having problems transferring from the general fund to the 02 fund. Just not sure what I'm doing wrong.

The issue is that you're listing everything as going to (I'm assuming) regular 'tithes & offerings', which is setup to use Fund 01. The stock transfer, does it remain as stock, or is it sold and funds then used in operating?

The answer to that question will determine any advice.
Neil Zampella

Using PC+ since 1999.

NNBCdmh
Posts: 8
Joined: Wed Mar 13, 2019 10:34 am

Re: Pledges

Post by NNBCdmh »

It remains as stock.

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

Post by NeilZ »

NNBCdmh wrote:It remains as stock.
So there's no real 'deposit' in to the bank, and you can't count it as 'tithes and offerings' for normal use. I'm going to assume that the donor gives a check towards the pledge, then drops the rest via the stock transfer. If I'm assuming too much let me know.

What i would do is this, setup the pledge as normal. The system will track any donations given by check and update the pledge total appropriately.

When he drops the stock transfer, just update the Fund 02 (I'm assuming an endowment type of fund) with the amount of the stock as of the day of transfer. You'll probably have to do this through a Funds Accounting transaction, you should already know how to do this, I use a saved transaction as it happens fairly often.

Head to Contributions -> Pledges -> Maintain Pledges find the current pledge, highlight it and click the Change button. Enter the value of the stock transferred in the box that says Pledge Start Balance. This will update the pledge to reflect that value and will eliminate any issues with transferring funds, along with any issues with having to adjust what you see as deposits to the bank account.
Neil Zampella

Using PC+ since 1999.

NNBCdmh
Posts: 8
Joined: Wed Mar 13, 2019 10:34 am

Re: Pledges

Post by NNBCdmh »

Thanks Neil,

There isn't any checks involved at all. The stock is transferred from the member directly to the churches account.

My experience with stocks in this capacity is non existent so I'm not sure what accounting procedure you would use. So if you could go a little deeper I would appreciate it.

Thanks for you help!

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

Re: Pledges

Post by NeilZ »

NNBCdmh wrote:Thanks Neil,

There isn't any checks involved at all. The stock is transferred from the member directly to the churches account.

My experience with stocks in this capacity is non existent so I'm not sure what accounting procedure you would use. So if you could go a little deeper I would appreciate it.

Thanks for you help!
I'm assuming that your Fund 02 is where you keep your stock information. What I would do is as the donor transfers the stock, you update the pledge 'starting balance' to reflect the amounts given. At the end of the pledge period, it would show that the 2,000 pledged was fulfilled, that would appear on the contribution report. The donor would have his stock transaction receipt to prove his tax deductions.

Then you would add a fund accounting transaction to reflect that the stock was transferred to maintain your stock account information.

Not knowing how you have your system setup, I can't offer more advice than that.
Neil Zampella

Using PC+ since 1999.

NNBCdmh
Posts: 8
Joined: Wed Mar 13, 2019 10:34 am

Re: Pledges

Post by NNBCdmh »

Thank you. That helps!

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