An important summary report for your congregation shows the organization’s activities (income and expenses) by fund, according to donor restrictions. This five-column report shows your usual budget in one column, other “off-budget” activity in three additional columns, and a total. Transfers between funds (for example, a 4% investment draw) will show as negative in one… Read More »How to Create an Activities by Fund Report
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
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
If you’ve received a Paycheck Protection Program loan from the Small Business Administration, it is very important to proactively approach your use of the funds so that you can maximize your loan forgiveness. The purpose of the loan is to be able to retain or rehire your employees during the economic challenges of the coronavirus… Read More »SBA PPP Loan Forgiveness Spreadsheet
Frequently at this time of year, an organization will want to use excess funds from a previous year for something in the future. Remember, by definition in a non-profit, all unused funds are carried over to the next year. (That’s what defines it as a non-profit, rather than paying out its profits to its owners or… Read More »How can funds be carried over to a future year?
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?
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?
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
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
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