Can contribution batches be handled differently?

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BBS
Posts: 10
Joined: Mon Dec 19, 2022 1:38 pm

Can contribution batches be handled differently?

Post by BBS »

Hi, everyone! My first forum post…

I will be doing the bookkeeping for a new very small Christian non-profit organization (NPO). It was organized in 2022, and the number of transactions during 2022 is probably around 150 (i.e., not many).

I realize that PowerChurch Plus is designed for church accounting, and this organization is not a church. However, because PC+ is designed for fund accounting, not commercial profit-making companies, the software makes great sense to use for this NPO. Also, back in the early 1990s I used PC+ for the bookkeeping for a church, so I am familiar with at least an old iteration of it.

Yesterday the NPO bought a license for PC+14 Desktop, and now I need to set everything up in and input all 2022 transactions and get ready for 2023.

The organization is a charitable corporation, but it does not have 501(c)(3) status. (It may apply for that status in the future.) Because it is not a 501(c)(3) organization, donations directly to it are not tax-deductible. It did receive some direct (non-deductible) donations during 2022.

The NPO also has a contract with a corporation which is its "fiscal sponsor". That means that the fiscal sponsor collects donations that are designated for the use of the NPO on its charitable programs. Donors to the fiscal sponsor, which is a 501(c)(3), receive tax-deductible donation receipts from the fiscal sponsor, not from the NPO. The fiscal sponsor disburses funds for charitable program expenditures to the NPO, minus processing fees.

I think that within PC+ I can handle the tracking of donations that are made directly to the NPO. I already modified the standard contribution report that shipped with PC+ so it now clearly states that donations to the NPO are not tax-deductible. I will post those transactions to the Fund Accounting module.

THE QUESTIONS:

(1) But what about the list of donations the NPO receives each month from its fiscal sponsor? The NPO wants to track them and even send "Thank you notes" or "Contribution statements" or some such communication to those donors. However, the amounts donated to the fiscal sponsor will never match the amounts the NPO receives since the fiscal sponsor deducts various processing fees depending on whether the donation was done via check, credit card, ACH, etc. Besides that, the fiscal sponsor forwards the funds to the NPO on contractual terms, not necessarily in full each month.

What I propose is to somehow enter the donations that the fiscal sponsor received into the Contributions module, but not post them to the Fund Accounting module. I noted in the File>Preferences>Contribution Setup dialog that I can "Post Contributions to":
  • Update Fund Accounting
  • Update Fund Accounting Via File
  • Print an Accounting Report
  • Only Update the Contributions Module
(I would have included a screenshot, but apparently I cannot yet post images due to my newbie status – understandable!)

Since I have not yet even set up the chart of accounts, therefore I have not yet entered any transactions, I'm wondering if that setting is global and non-overridable. Maybe it can be overridden for certain batches of contributions? If it can be overridden, then I could enter the direct-to-NPO contributions and have the default remain "Update Fund Accounting". Then I could enter as a different batch the donations which the fiscal sponsor received and temporarily change the setting so the "Only Update the Contributions Module" is in effect. Is that a good idea? Any better ideas?

(2) Another thing: I think I saw that negative amounts can be entered in contributions to document the amount of processing fees the receiving organization had to pay. I will need to do that with the donations to the fiscal sponsor. Can someone show me what that looks like?

Thank you very much!
Eric
PowerChurch Plus v. 14 on Windows 10 Home running in Parallels 18

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Can contribution batches be handled differently?

Post by NeilZ »

BBS wrote:
Wed Dec 21, 2022 7:49 am

THE QUESTIONS:

(1) But what about the list of donations the NPO receives each month from its fiscal sponsor? The NPO wants to track them and even send "Thank you notes" or "Contribution statements" or some such communication to those donors. However, the amounts donated to the fiscal sponsor will never match the amounts the NPO receives since the fiscal sponsor deducts various processing fees depending on whether the donation was done via check, credit card, ACH, etc. Besides that, the fiscal sponsor forwards the funds to the NPO on contractual terms, not necessarily in full each month.

What I propose is to somehow enter the donations that the fiscal sponsor received into the Contributions module, but not post them to the Fund Accounting module. I noted in the File>Preferences>Contribution Setup dialog that I can "Post Contributions to":
    • Update Fund Accounting
    • Update Fund Accounting Via File
    • Print an Accounting Report
    • Only Update the Contributions Module
(I would have included a screenshot, but apparently I cannot yet post images due to my newbie status – understandable!)
FWIW .. no attachments are allowed to be uploaded. You can link to an external location, but that's it.
Since I have not yet even set up the chart of accounts, therefore I have not yet entered any transactions, I'm wondering if that setting is global and non-overridable. Maybe it can be overridden for certain batches of contributions? If it can be overridden, then I could enter the direct-to-NPO contributions and have the default remain "Update Fund Accounting". Then I could enter as a different batch the donations which the fiscal sponsor received and temporarily change the setting so the "Only Update the Contributions Module" is in effect. Is that a good idea? Any better ideas?
The setting cannot be overridden those are the selections and they can't be changed. However, there is a way to do what you want. Enter the Direct-to-NPO once a week, say this coming Monday, 12/26/2022. Don't enter any donations received at the NPO office on that day, do that the rest of the week. Once you enter those Monday donations, Post Contributions, but change where via the drop down to Contributions Only. The rest of the week you can allow it to be posted to Funds Accounting.

(2) Another thing: I think I saw that negative amounts can be entered in contributions to document the amount of processing fees the receiving organization had to pay. I will need to do that with the donations to the fiscal sponsor. Can someone show me what that looks like?

Thank you very much!
Eric
Negative amounts were usually used to reverse entries, that manual process has been changed in the newer versions, so its not often used. I don't recall any situation where it was used otherwise. What I would do when you run these 'statements' is to add in the additional comments block on the report that amounts given through (the service) reflect what is forwarded after fees and other costs are deducted. Or you can create a Contribution Fund not connected to anything in Fund Accounting, name it (the Service Processing Fees) and enter the negative number to that fund. It will show up on the statement.

Frankly, IMHO ... the best way to do this is just to send a generic 'Thank You for your Donation made through the service. We appreciate your gift and will put it to good use." ..
Neil Zampella

Using PC+ since 1999.

BBS
Posts: 10
Joined: Mon Dec 19, 2022 1:38 pm

Re: Can contribution batches be handled differently?

Post by BBS »

NeilZ wrote:
Wed Dec 21, 2022 11:43 am
The setting cannot be overridden those are the selections and they can't be changed. However, there is a way to do what you want. Enter the Direct-to-NPO once a week, say this coming Monday, 12/26/2022. Don't enter any donations received at the NPO office on that day, do that the rest of the week. Once you enter those Monday donations, Post Contributions, but change where via the drop down to Contributions Only. The rest of the week you can allow it to be posted to Funds Accounting.
Thank you, Neil. That is exactly what I wanted to know.

I also appreciate the other comments you made!

Eric
PowerChurch Plus v. 14 on Windows 10 Home running in Parallels 18

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