Non-Cash Contribution

[rmorisset]

Greetings,

We have purchased PowerChurch (PC11.1) for our church, but are currently still using the old software (Servant Keeper) which allows us to enter a Non-Cash contribution (i.e. someone purchases some equipment to donate to the church and provides the receipt that shows the amount he/she spent). How can we enter this information in PC?

Richard Morisset

[NeilZ]

Greetings,

We have purchased PowerChurch (PC11.1) for our church, but are currently still using the old software (Servant Keeper) which allows us to enter a Non-Cash contribution (i.e. someone purchases some equipment to donate to the church and provides the receipt that shows the amount he/she spent). How can we enter this information in PC?

Richard Morisset

Welcome to PowerChurch, just some quick advice from another user about using the forums for future questions. Each area of Powerchurch has a separate forum topic where it is suggested that you post questions. In this case, the question should belong under the Contributions area of the forum.
Not an issue, but for the future you'll see that you may actually find your answer there, or by doing a search.

That said, there is a way to do this.

You would create a Contribution Fund that does NOT post to Funds Accounting.
There is some preparation for this:

1. Add a new code to the Contribution Type list by going into Contributions -> Setup -> Maintain Custom Codes and adding a new type of Non-Cash.
2. While you're there, add a new Contribution FUND Type of Non-Cash then close that dialog window
3. Then still in Setup

• a) Select Maintain Contribution Funds then click on the Add button.
  b) Enter a Contribution Fund Number and give this fund a name such as Non-Cash Contributions .
  c) Select the Fund Type of Non-Cash that you setup in step 2.
  d) Check the box that says Include Fund on Statement.
  e) Do Not assign this fund to any Funds Accounting account, neither income nor expense. If you do, you will throw off your accounting and deposits, the system would add any amount listed as part of income, and show it on the deposits.
  f) Save the new fund.

Just remember, whenever you go to Post Contributions to Funds Accounting you will get a Information Message that says you do not have any Funds Accounting Accounts setup for one fund. Just click the OK button to continue. All this will do is post everything else over to FA, and post the non-cash stuff in the Contributions database area for statements.

Hope this helps

[rmorisset]

Thank you for your welcome, directives and your reply. I will try your suggestions.

Regards,

Richard Morisset

[NeilZ]

I'm happy to be of service.

Just a note, I just did a test to verify something, and the system will not give you an error or information message if you Post Contributions and do not have the FA accounts setup.

When you print statements, make sure you have the Print Contribution Type checked, so that the statement reflects the 'Non-Cash' type of contribution. You may want to add a statement to the standard disclaimer required by the IRS to the bottom of the statement informing that any 'non-cash' contributions must be reported separately from the cash contributions on their tax return.

Its not necessary, but it may keep the church out of any misunderstandings between the IRS and a taxpayer

[adrake01]

PowerChurch does not allow you to enter a zero dollar amount. Is there a way around this. I tried to use the noncash fund type and was trying to use the memo line to note amount of stock shares donated but it would not post due to the zero dollar amount.

[NeilZ]

PowerChurch does not allow you to enter a zero dollar amount. Is there a way around this. I tried to use the noncash fund type and was trying to use the memo line to note amount of stock shares donated but it would not post due to the zero dollar amount.

FWIW ... per IRS rules, you really need to include the value of the stock on the date it was transferred/converted.

You may find this thread helpful: viewtopic.php?f=4&t=7248&p=24512

[adrake01]

Unfortunately, that is not what our accountant/Treasurer is telling me.
He says that it is our responsibility to report the number of shares that was donated because the share value fluctuates so much and if we choose not to cash in those stocks right away, the value may have gone down from when they gave the gift. They still have the right to report the gifts value as of when they gave it not when we redeemed it.

[NeilZ]

Unfortunately, that is not what our accountant/Treasurer is telling me.
He says that it is our responsibility to report the number of shares that was donated because the share value fluctuates so much and if we choose not to cash in those stocks right away, the value may have gone down from when they gave the gift. They still have the right to report the gifts value as of when they gave it not when we redeemed it.

That is correct, however as someone else said that they're doing:

I settled on writing the acknowledgement letter to state the name of the company and number of shares. For the contribution statement, we created a Stock Transfer contribution and listed the value given on the date of transfer from the UBS statement, which lists the value as of the price at end of day.