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Financial Reporting

Year-end Contributions 2022

As the end of the year approaches, it is important to document contributions properly, so that donors may deduct the charitable contribution on their income tax return. The proper dating of year-end contributions involves dates, bookkeeping, and documentation. DATES  For the IRS, it is the date of the check and the date that the congregation… Read More »Year-end Contributions 2022

Year-end Contributions 2021

As the end of the year approaches, it is important to document contributions properly, so that donors may deduct the charitable contribution on their income tax return.  This is especially important for 2021, since the CARES Act temporarily allows those who do not itemize their deductions to reduce their taxable income by up to $300… Read More »Year-end Contributions 2021

What Policies and Procedures Should a Congregation Develop?

Every congregation has financial policies and procedures, both written and unwritten.  Policies clarify expectations and increase compliance among volunteers and staff.  Procedures provide reminders and assist in training.  How can you evalulate and document your financial system?  Which policies (approved by Council or congregation) and procedures (documented) should you have to protect the financial health… Read More »What Policies and Procedures Should a Congregation Develop?

What is Accrual Accounting?

During the Q&A of a recent webinar, a participant asked, “What is Accrual Accounting?”  It is one of the primary “best practices” for non-profit organizations, since it provides a more accurate assessment of an organization’s financial activity.  A longer explanation is available on pages 59-63 of A Church Finance Handbook, but here is a snapshot: There are… Read More »What is Accrual Accounting?

Spring Cleaning

Time for a bit of spring cleaning?  What are the recommendations for the retention of the various kinds of financial records? In addition to protecting the history of the church, you will want to support your employees, your volunteers, and your contributors, so that if someone connected to your congregation is audited, you will be able to provide… Read More »Spring Cleaning

Bi-weekly pay difficulties

Historically, Friday has been payday — at the end of the week, employers would pay their employees for the week’s work.  More recently with the advent of direct deposit and payroll services, many employers have switched to bi-weekly pay for hours worked through the previous Sunday.  Does this work for the church?  Yes and no.… Read More »Bi-weekly pay difficulties

Year-end Contributions 2016

As the end of the year approaches, it is important to document contributions properly, so that donors may deduct the charitable contribution on their income tax return.  This involves dates, bookkeeping, and documentation. DATES  For the IRS, it is the date of the check and the date that the congregation receives the contribution that matters, even if… Read More »Year-end Contributions 2016

New deadlines for W-2s and 1099s

The IRS has changed the employer deadlines for filing W-2 and 1099 forms, effective in January 2017.  The January 31st deadline for an employer to send the forms to employees and contractors has not changed. The deadline for employers to submit W-2/W-3 copies to the Social Security Administration and 1099/1096 copies to the IRS has moved… Read More »New deadlines for W-2s and 1099s