Funding ministry accounts

[AKJuanita]

Each month I need to allocate a percentage of Tithes to our Children's Ministry and Youth Ministry accounts. These ministries do NOT have a separate bank account so the illustration in the manual is not very helpful.

One idea I have is to debit the 9100-000 Transfer To account and credit the appropriate income account (Children's Ministry and Youth Ministrhy). That way there would be income for them to spend for their activities.

Hopefully this is not the only congregation who does this and someone will have either a better idea or confirmation that I'm on the right track.

Thanks,
Juanita

[JohnDMeyers]

This is best done in Contributions.

You can assign a Contribution Fund to receive a percentage of another Contribution Fund.

If Contribution Fund 100 is your General Tithes and it allocates money like this:
DB 01-1110-000 checking
CR 01-4050-000 General Tithes

Then you can create Contribution Fund 200 to receive 8% (or any percentage) of Fund 100 in the bottom part of the window:
Fund 200
DB 01-1110-200 checking (or you can use 02-1110-000 for Accounting Fund 02)
CR 01-4210-000 youth income (or you can use 02-4210-000 for Accounting Fund 02)
will receive 8%
of Fund 100

[beas]

John is correct about this. However, the one drawback to this that I see and the reason I don't use it is that on reports it doesn't give you a true picture of how much actually came in as tithes (or whatever you're transferring it from). For example, if you had $100 come in for tithes in the general fund and allocated 10% of it to another fund, you would only show $90 coming in as tithes for the general fund. If that works for you, it's a great tool.

[NeilZ]

Bill, you're only looking at the Funds Accounting reports. In Contributions under the built-in Funds Report the amount contributed to the original fund is listed, it is only at posting time, that is when you post contributions to Update Funds Accounting are the proper transactions created to transfer the money to the different Funds Accounting accounts.

[AKJuanita]

Thank you everyone for your input!

At the end of the month we send a percentage of Tithes to the State and International offices; therefore, it is imperative that Tithes posted to Fund Accounting is the total received and NOT a reduced amount. I've never felt comfortable allowing postings in Contributions to post directly to Fund Accounting. We frequently have substitute people performing that duty and I am only a part-time free-lance bookkeeper for this church. They can post contributions and any questions regarding the allocation can be brought to my attention and I can make adjustments to the Report that is printed.

If I follow John's suggestion and do this via Contributions, does anyone know if Tithes are reduced by the percentage of allocation to these other ministries?

Thanks for your help!
Juanita

[ACTS III]

We also send a % of tithe to Intl & State each month.
We have a Contribution Fund 1 for Tithe, and Contribution Fund 9001 for Denomination Support.
Contrib Fund 9001 receives 14% of Contrib Fund 1 at time of posting (We do NOT enter contributions in 9001).

On the chart of accts, Accounting Fund 01 is the Tithe Fund, and Accounting Fund 02 is Denomination Support. Both funds have an income acct for Tithe... 01-4030 and 02-4030.

Now when contributions are entered, only one entry to the Tithe Contrib Fund 1 is necessary.
Then when contributions are posted, the correct % is posted to Denomination Support (automatically).
When I run financial reports, I print a Consolidated I&E report and it shows the TOTAL Tithe received for that month (combines 01-4030 and 02-4030).

This same concept works for other Ministry Funds as well, as long as they are in separate Acctg Funds and "share" an income acct.