FCC Admin Tasks - Handling In-Kind Donations

Handling Non-Cash (In-Kind) Donations

A donor may wish to receive donor credit for non-cash items purchased for or donated to the church. A statement of value is required – ideally a receipt to be kept on file. If no donor credit is requested, use “Anonymous Donor” instead of the donor’s name.

An in-kind donation involves entering the donation as well as an expenditure. When the donation is created, it should be deposited into the account 12900 In Kind In/Out instead of undeposited funds Similarly, the expenditure should be paid out of the account 12900 In Kind In/Out instead of a bank account.

Creating the non-cash Donation

The only difference between this and a regular donation are the payment method and deposit to values (both are hi-lited in the image). This is an example of an in-kind donation of a tree to the Memorial Fund in honor of Helen Bernardez. Note that the PRODUCT/SERVICE for donations for items posted to church operations should always be “InKind”.

Create a Sales Receipt
Enter the following fields:

Donor
Sales Receipt Date
Payment Method → “In Kind”
Reference no. → “InKind”
Deposit To → “12900 In Kind In/Out”
PRODUCT/SERVICE → “Des:Memorial” {s/be “InKind” for church operations}
DESCRIPTION → describe the item
RATE → value of the item
CLASS → “Memorial:Helen Bernardez” {class s/be entered for memorial fund}
Message displayed on statement → {same as DESCRIPTION}

Attach the document/receipt reflecting the value of the item
Save and Close the donation

Figure 1: In-Kind Sale Receipt

Creating the non-cash Expenditure

The only difference between this and a regular expense are the payment method and payment account values (both are highlighted in Figure 2). This is an example of an in-kind donation of a tree to the Memorial Fund in honor of Helen Bernardez. For designated funds, the PRODUCT/SERVICE on the detail line should be the same as on the donation PRODUCT/SERVICE; otherwise, use a PRODUCT/SERVICE associated with the expense category like “Office Supplies”.

Figure 2: In-Kind Expense