Our youth group is going on an outing and we do not have enough money in the youth expense account to cover the total cost. We have asked parents to donate $20 for each child. How do I handle this money? Do I set up a new contribution fund? Can I show the money going to the expense account?
Some members are also making donations to help cover the costs so their donation is tax-deductible, while the parents is not.
In this case you are going to need 2 contribution funds. 1 for the parents that will be marked to not show on contribution statements, the other can be shown on contribution statements because those gifts can be tax deductible.
Sandy,
I realize that you asked this question some time ago but I just came across it. Perhaps this will help you in the future.
I believe that you have to remember that not all money that comes into the church needs to go through the contribution module. Monies that have nothing to do with a member's contribution and are not tax deductible can just be plain deposits that are put in fund accounting. We have the situation that you mention frequently during the year for various youth activities. The youth pastor collects all the money for the function and a separate deposit is made. I enter the deposit as a credit against the youth "Activities and Events" expense account. This then offsets the expense for the function that was paid out throught that same expense account. We drove ourselves crazy for awhile trying to account for everything through the contribution module. Now it stays fairly simple and clean.
Hope that helps.
debbie