Contribution in lieu of reimbursement

[mgc1945]

One of our members purchased some office supplies, which were legitimate needs for our church office. Instead of receiving a reimbursement for this purchase, she asked that the amount of the purchase be entered as a contribution for her, and that, in particular the contribution be put into our kitchen equipment fund.

I could insist that she receive a reimbursement for the purchase, and ask that she write a check for the same amount back to the church for the kitchen equipment fund. However, is there a way to handle this through accounting entries such that
1. the member gets credited with the contribution
2. the office supplies expense account is debited with the cost of the purchase
3. the kitchen equipment account gets credited with the amount

Thanks in advance for any help.

[Jeff]

The accounting side yes.

You could make an entry the debits the Office Supplies expense and credits the Kitchen Equipment income. This would show an increase it he Office Supplies expense and an increase in the Kitchen Equipment income.

The problem is the contribution side. By turning in the receipt this is no longer a cash contribution. The rules for donations of property are different than donations for cash. There have been other topics on the forum that discuss when someone gives property rather than cash.