Accounting for Youth Fundraiser

[viennabaptist]

Our church youth program is starting to sell concessions at some church functions as a fundraiser project. Previously, I have just entered these funds raised as contributions using the envelope I created for John Doe. Is this correct or is there a more accurate way?

[NeilZ]

Our church youth program is starting to sell concessions at some church functions as a fundraiser project. Previously, I have just entered these funds raised as contributions using the envelope I created for John Doe. Is this correct or is there a more accurate way?

We do the same thing, excepting when there are checks collected, these are credited toward the contributor. Everything goes in the main checking account, and the proper income accounts are creditied when the Contributions are posted.

[VICRAMZ]

We use the Accounts Receivable module for fundraisers. Most of the time, these are not true contributions under tax law. When someone receives something of value in return, it's not a contribution, it's a sale. Same goes for tuition payments to our preschool.
Let me add that the A/R module is sadly lacking, does not mesh well with Fund Accounting, and does not allow for very basic functions (like refund checks).
If you choose to use the A/R module, I can share some advice, based on our experiences. How you use it depends on exactly how you track the proceeds of your fundraisers, whether you credit individuals or just lump the money together for the group, etc.
Hopefully, Power Church will consider a major upgrade of the A/R module in their next release. If so, I have some ideas.