Contribution Fund Setup

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Wagner
Posts: 5
Joined: Tue Nov 02, 2021 3:30 pm

Contribution Fund Setup

Post by Wagner »

I am new to PowerChurch having assumed the Treasurer's position several months ago. My question involves posting a transaction through the Contribution module. We set up a Capital Campaign fund [Fund # 7100]. The fund is set to Debit our Operations checking account [02-1110-200] and Credit Capital Campaign Fund Income [02-4276-000]. I recently discovered a past transaction that occurred in June of last year. This was a rather large stock donation that was deposited in a brokerage account so that it could be liquidated. The donation was liquidated but never transferred to our Operations checking account. The donation was given to support the Capital Campaign Fund but was never applied that way. The prior treasurer simply posted it as a debit to cash and a credit to equity. What is the best way to apply this donation to our Capital Campaign fund? Is there a way to adjust the debit account (to that of the brokerage account) for this one transaction so that I can repost the original transaction through the contribution module in order to properly apply the donation to the Capital Campaign? Then switch the debit account back to that of the operations checking? Or does switching the debit account for one posting affect other prior postings? And I need to keep this transaction date consistent with the date of the donation so as to keep it in the proper tax year to properly reflect the year-end contribution statements. any help would be greatly appreciated. Thanks. Chris Wagner.

NeilZ
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Re: Contribution Fund Setup

Post by NeilZ »

Wagner wrote:
Tue Mar 08, 2022 5:11 pm
I am new to PowerChurch having assumed the Treasurer's position several months ago. My question involves posting a transaction through the Contribution module. We set up a Capital Campaign fund [Fund # 7100]. The fund is set to Debit our Operations checking account [02-1110-200] and Credit Capital Campaign Fund Income [02-4276-000]. I recently discovered a past transaction that occurred in June of last year. This was a rather large stock donation that was deposited in a brokerage account so that it could be liquidated. The donation was liquidated but never transferred to our Operations checking account. The donation was given to support the Capital Campaign Fund but was never applied that way. The prior treasurer simply posted it as a debit to cash and a credit to equity. What is the best way to apply this donation to our Capital Campaign fund? Is there a way to adjust the debit account (to that of the brokerage account) for this one transaction so that I can repost the original transaction through the contribution module in order to properly apply the donation to the Capital Campaign? Then switch the debit account back to that of the operations checking? Or does switching the debit account for one posting affect other prior postings? And I need to keep this transaction date consistent with the date of the donation so as to keep it in the proper tax year to properly reflect the year-end contribution statements. any help would be greatly appreciated. Thanks. Chris Wagner.
If the donor received a acknowledgement letter when the stock was given, you don't need to reflect that in Contributions, other than adjust any pledge that was made. You do that by adding the value of the stock the day it was given to any amount in the Pledge Start Balance under his pledges. That will reflect what he has fulfilled.

As far as the original transaction, hopefully you don't close months, so you can go and reverse that transaction, and then enter a using that same date transaction in Funds Accounting to cover this donation. The transaction would look like a normal Contributions transaction debiting the bank account (02-1110) and crediting the income (02-4276). The system will then take care of updating the Fund Balance (equity) account.

I'm assuming that the funds from the stock sale was transferred to your checking account from the broker.
Neil Zampella

Using PC+ since 1999.

Wagner
Posts: 5
Joined: Tue Nov 02, 2021 3:30 pm

Re: Contribution Fund Setup

Post by Wagner »

Thanks, Neil. The funds were never transferred from the brokerage account to the operations account. But, that's not the transaction I'm worried about. I can do that shortly. My concern is recreating the contribution properly, which for the most part you have answered for me. My only other concern is adjusting the debit account for the correcting transaction. Recapping, I need to use the brokerage account as the account of debit which I would like to do just for that one transaction. And I want to be sure that this does not affect historical transactions.

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

Post by NeilZ »

Wagner wrote:
Thu Mar 10, 2022 2:51 pm
Thanks, Neil. The funds were never transferred from the brokerage account to the operations account. But, that's not the transaction I'm worried about. I can do that shortly. My concern is recreating the contribution properly, which for the most part you have answered for me. My only other concern is adjusting the debit account for the correcting transaction. Recapping, I need to use the brokerage account as the account of debit which I would like to do just for that one transaction. And I want to be sure that this does not affect historical transactions.
I'm fairly sure you're going to have to reverse that original incorrect entry sometime. That's where the trouble all started. Apparently I need some additional information on the 'cash' account. Is this a petty cash account? Does it show up as funds in checking?

Let me know if the following assumptions are correct:
I'm going to assume that the brokerage account submitted a check from the stock sale, correct? I'm also going to assume that the prior treasurer, deposited that amount separate from a Contribution deposit, and shows as cleared in the bank statement for that month. In which case, a reversal of the previous transaction, again I'm assuming the treasurer entered it from Funds Accounting, and then entering a transaction that would CREDIT income, and DEBIT checking would straighten it all out.

If the assumption is wrong, then I need to know how the brokerage account is tracked. If its tracked in Powerchurch , is it tracked as investments under the Operations Fund Account, or does it have its own Fund Account?
Neil Zampella

Using PC+ since 1999.

Wagner
Posts: 5
Joined: Tue Nov 02, 2021 3:30 pm

Re: Contribution Fund Setup

Post by Wagner »

I'm not sure what form of payment the brokerage account received. It was either a check or a wire transfer. The amount was booked as a fund accounting transaction, not through the contribution module. I reached out to Powerchurch for support and this was their solution. Reverse the original transaction and repost the donation through the contribution module. Before completing the post, review the unposted transaction and edit the account numbers to reflect a debit to the brokerage account cash and credit the brokerage account equity. This keeps the brokerage account balance intact and identifies the contribution to the member's record. Post the transaction. Thanks for your help.

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

Re: Contribution Fund Setup

Post by NeilZ »

Wagner wrote:
Fri Mar 11, 2022 10:40 am
I'm not sure what form of payment the brokerage account received. It was either a check or a wire transfer. The amount was booked as a fund accounting transaction, not through the contribution module. I reached out to Powerchurch for support and this was their solution. Reverse the original transaction and repost the donation through the contribution module. Before completing the post, review the unposted transaction and edit the account numbers to reflect a debit to the brokerage account cash and credit the brokerage account equity. This keeps the brokerage account balance intact and identifies the contribution to the member's record. Post the transaction. Thanks for your help.
Yeah ... that should work, but does it reflect the amount over in the 02 fund account? In other words, did you add the brokerage account and its corresponding fund balance (equity) account to the 02 Fund Account for the Capital Campaign ?? If not, you're still not showing the funds earmarked for that use. In fact, you should do that anyway in case other stock is donated to the Capital Campaign.

That said, as I mentioned above, if the donor already received an acknowledgement of the stock transfer, you should not create a new Contributions statement for 2021 as they have already received credit, and the new statement would reflect an additional amount.
Neil Zampella

Using PC+ since 1999.

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