How do post contributions that are non-charitable contributions (not tax deductible)?

Non-charitable funds can be posted to the system just like charitable contributions. For tax purposes, it isn't necessary to post non-charitable funds to the individual's contribution record. It is completely the decision of the treasurer if these funds should be posted in contributions or not. If these funds are posted to contributions, the only difference them and regular contributions is the fund to which these funds will be posted. Money that is not tax deductible should be posted to a non-tax deductible fund. For information about how to designate a fund as non-tax deductible, please see the link below.

An example non-charitable funds would be things such as summer camp fees, book purchases or rental income. Fees paid by parents for their child to attend camp would not be a charitable donation to the church. The same is true in the case when the church buys books and then members purchase the books from the church. When the church receives funds for the use of their facilities, this is not a charitable contribution. The giver is receiving a service in return for their contribution. Separate non-deductible contribution funds should be setup for these types of funds, i.e. Camp Fees, Books or Rental.

In cases where only part of contribution is considered a charitable contribution, 2 entries would need to be made into contributions in order to post both parts of the contribution. One entry for the charitable portion and one entry for the non-charitable portion. Like mentioned above, the non-charitable portion does not have to posted into contributions, but can be posted as long as it is posted to a non-tax deductible fund.

When depositing these funds into the Checkbook, there are 2 options. Option 1, the money can be deposited just like an other funds received. The funds can be deposited just as if they were a normal tithe contribution. Option 2 is to post the funds as an in/out deposit. Posting these funds as in/out funds will prevent the funds from appearing on your reports as income or expense. This is the only difference between the 2 options and neither option will affect the income calculation on the Annual or Allocation Reports. Because of the Allocation method of calculating income, deposits do not affect income for Allocation purposes. See the link below for more information about income calculation or for instructions on entering an in/out deposit.

In most cases, non-charitable funds can be deposited as in/out deposits. Rental income would be an exception. Rental income would typically not be posted as an in/out deposit. With camp fees, the church is acting as the middle man, collecting the funds and then passing those funds onto the camp (in and out). With rental income, the church is the primary receiver of those funds so posting the funds as in/out doesn't work.

Non-charitable funds can be deposited into any internal account including the General Operating account. In some cases, treasurer's will use a generic "In/Out" account for in/out funds. A separate account can be created for these funds, example Camp Fees, so that the funds can be kept separate from other in/out funds. With an in/out transactions, the key to use the same internal account on both the deposit and the check when the money is paid out. Using different accounts on the deposit and check will result in accounts with incorrect balances. Since money like rental income is NOT in/out, it will typically be placed in the General Operating account.