pass through vs temp. restriction

Contributions, Faith Promises

Moderators: Moderators, Tech Support

Post Reply
Turning Point
Posts: 32
Joined: Wed Feb 08, 2017 4:54 pm

pass through vs temp. restriction

Post by Turning Point »

Our church is planning on helping one of our missionaries purchase a home for their ministry. We plan on gathering the money and then sending it on to them.

My question is would it be better to use a pass through account or a temp. restriction account.

We just want to make sure that all the money is accounted for and that all contributors get credited on their year end donation summary.

Lisa

NeilZ
Posts: 9403
Joined: Wed Oct 08, 2003 12:20 am
Location: Connellsville, PA
Contact:

Re: pass through vs temp. restriction

Post by NeilZ »

Turning Point wrote:
Tue Dec 29, 2020 1:06 pm
Our church is planning on helping one of our missionaries purchase a home for their ministry. We plan on gathering the money and then sending it on to them.

My question is would it be better to use a pass through account or a temp. restriction account.

We just want to make sure that all the money is accounted for and that all contributors get credited on their year end donation summary.

Lisa
I do hope that you're not advertising that as a direct support to the missionary. That type of support cannot be used as tax deductions per IRS rules. (See IRS Pub 526: Contributions you can't deduct)

It is better to collect funds for support of the mission at a certain town, and then setup a Contribution fund that supports that mission in that town. In this manner your contributors can take the deduction on their tax return.

As far as tracking the funds, I would not keep the money separate from your normal mission funds, just track the contributions using the amounts as collected in the Contributions module.

That said, if you must keep it separate, I would use a restricted account under your operations/mission accounts.
Neil Zampella

Using PC+ since 1999.

Post Reply